US dollar movements today

The US dollar stabilized during the Asian trading period on Friday and it seems that it is heading to extend its longest weekly winning streak in more than a year, as the dollar index is heading for its sixth weekly rise in a row, supported by rising bond yields and expectations of another strong set of US jobs figures.

We are waiting for US jobs data today, and nonfarm payrolls data in the United States is expected to show that the economy added 160 thousand jobs in December in addition to 227 thousand jobs in November, with the unemployment rate stabilizing at 4.2%.

Markets also lowered their expectations for a US interest rate cut in 2025 to about 40 basis points, while concerns about President-elect Donald Trump's possible inflationary agenda helped push longer-term yields higher.

DXY

The dollar index is poised for a sixth consecutive weekly gain, its longest winning streak since 2023, as the US outperforms other economies.

USDJPY

The dollar has gained 0.5% against the yen this week.

EURUSD

The euro is stable this week against the US dollar, reaching levels of 1.0289 dollars.

GBPUSD

The troubled pound sterling also fell by 1% against the US dollar, as the pound was hit hard yesterday and fell to its lowest levels in 14 months due to a sell-off in government bonds and concern about the British finances.

Ten-year British government bond yields (GB10YT=RR) rose by 22 basis points this week to 4.805%.

US10Y

Ten-year US Treasury bond yields rose by about 10 basis points this week to 4.70% and have risen by 100 basis points since mid-September.

BTCUSD

Unusually, the turmoil in the bond market seems to have been felt by cryptocurrencies, as bitcoin has fallen by 6% against the dollar this week, now trading near the levels of 94,500 dollars.