Despite worse-than-expected employment data on Friday, the dollar was trading near 3-month highs at the beginning of Monday’s Asian session, boosted by solid data from the services sector. The dollar rose 0.25% against the yen, forex trading at 114.35, after rising 0.5% in the previous session to a high of 114,735 yen and rose 0.04% against the Canadian dollar at 11:15 A.M HK / SIN on Monday.
US employment data released last Friday showed disappointing wage growth, but analysts have pointed to expectations that this change is temporary and in line with recent trends.
The dollar remained unchanged against the pound sterling, even as the pound rose more against most of its crosses after a devastating day on Friday that resulted in the biggest one-day drop since the week after the Brexit vote . The 1.7% drop in the pound of last week was the result of the Bank of England rate announcement on Thursday, which indicated that there would only be 2 more rate hikes in the next 2 years.
Oil Prices Pull the Hike
Oil prices rose sharply on Monday morning, forex trading near the highest levels since July 2015 after Saudi Crown Prince Mohammed bin Salman ordered several arrests of senior officials in a campaign against widespread corruption . The arrests consolidated Bin Salman’s power, but they are not expected to bring about any policy changes in the short term.
WTI crude futures rose 0.25% to $ 55.78 a barrel, while Brent crude futures rose 0.34 percent to $ 62.28 a barrel. Supporting the price increase was also a decrease of 8 oil rigs in the US count in recent weeks, which is the largest reduction since May 2016.