Euro set for longest losing streak in its history, U.S. payrolls loom
By Rae Wee and Alun John
SINGAPORE/LONDON (Reuters) — The euro was heading on Friday for a record twelfth week of declines against the dollar, unless U.S. jobs data later in the day push the currently all-dominant greenback lower.
The European common currency was last up a fraction on the day at $1.0575, moving off Tuesday's 10-month low of $1.0448 but still set for a further small weekly decline making that streak the longest since its launch in 1999.
The euro/dollar moves have largely been dollar-driven, and the dollar index, which tracks the unit against six main peers, albeit with the greatest weight given to the euro, is heading for a 12th straight week of gains.
The last time it clocked such a milestone was in 2014.
The dollar's recent strength has been underpinned by a rapid sell-off in U.S. government bonds, which sent yields to multi-year highs.
That was driven by a combination of selling by some asset managers who had held overweight positions in government bonds, rising oil prices, a deluge of supply of government and corporate bonds, and investors finally accepting that central banks will keep rates high for a long time, particularly in the United States where economic data has been strong.
Other currencies were able to catch a break in the middle of this week when bond prices steadied, but U.S. non farm payrolls data (due at 1230 GMT Friday) could change that.
«The pause in the bond sell-off is granting some room for recovery for most currencies against the dollar. Today’s US payrolls are, however, the big event of the week and a strong read could easily put markets back on a bearish track and reignite aggressive dollar buying,» said Francesco Pesole, FX strategist at ING.
The pound, which hit a
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