The dollar retreats, awaiting Friday’s employment report

The dollar fell against other major currencies on Thursday after the release of higher-than-expected unemployment figures, but traders remained cautious ahead of Friday’s monthly jobs report.

By 9:20pm GMT, the greenback had lost 0.30% against the single currency at $1.0578 per euro. It is 0.90% yen, 136.12 yen to the dollar.

For Canavera’s Joseph Manimbo, caution is warranted ahead of Friday’s February release of U.S. job creation figures and the Bank of Japan’s communication after its meeting.

On Thursday, the “greenback,” one of the dollar’s nicknames, gave up some ground as fresh weekly jobless claims in the U.S. hit their highest level since December, Jefferies’ Brad Bechtel explained.

The dollar also fell in line with bond yields, which fell sharply after an explosive start to the week.

Brad Bechtel expects the dollar to benefit from higher-than-expected job creation on Friday, “but it’s moved up a lot in a short period of time, so we’ll see some profit-taking after the indicator’s release.”

Elsewhere in the foreign exchange market, the Mexican peso hit its highest level in more than 5 years against the dollar on Thursday. According to Brad Bechdel, “He has a lot of assets now.

For Mark Sandler of Bannockburn Global Forex, the currency is benefiting from the very high interest rate from the Central Bank of Mexico (Banco de Mexico), currently at 11%. Trade”.

The strategy involves borrowing currencies in a market with low interest rates to place them in a country with high yields, with Mexico posting some of the highest bond yields among major economies.

According to Marc Sandler, the Mexican peso is being carried by the good performance of the Mexican stock market, which is close to the records reached last year, while Wall Street is treading water.

The last card in the peso game, according to the analyst, is that the country is benefiting from the influx of foreign investment in key economic projects, especially in China.