Dollar books best day since June as payrolls lift Treasury yields
The dollar posted its best day since June after strong US payrolls lifted Treasury yields, while Iran talk reports and firmer US sentiment shaped the close.
Live chart · DXY, AUDUSD, USDCAD, EURUSD · TradingView
The dollar closed Friday with its best day since June, according to Investing.com, and the outlet says it was set for a weekly gain. The driver was the strong US October jobs report, which pushed Treasury yields higher across the curve, as Investing.com also reports.
Our previous recap covered the payrolls beat itself. Since then, the story has moved to bond markets, US consumer sentiment, Iran diplomacy and a change at the top of the White House staff.
What moved and why
The investingLive Americas wrap sums up the session. US non-farm payrolls rose 165K against 65K expected. Canada lost 4.7K jobs against a 13.6K gain expected, with unemployment at 6.7%. For background on why a gap like that moves currencies, see this explainer on consensus forecasts and data surprises.
US consumer data added support. The preliminary University of Michigan sentiment index for November came in at 51.0 against 48.0 expected and a prior 46.3, investingLive reports. One-year inflation expectations eased to 4.3% from 4.7%, and the five-year measure slipped to 3.4% from 3.5%.
Risk appetite improved during the day. According to investingLive, Al-Arabiya cited an Iranian source saying Tehran was responding positively to mediator proposals. Oil came under pressure and stocks rose on that report. investingLive also cites the Times of Israel saying Iranian negotiators are reviewing proposals to curb the nuclear program. Later, President Trump said "we are talking to Iran", but investingLive notes late-day bids in crude, likely on fears of weekend escalation.
In equities, the investingLive close described a rebound in beaten-up memory stocks that faded but did not break down, after a brutal rout earlier in the week.
The majors in the fixings
The latest ECB reference rates are from Thursday 6 November, compared with 5 November. The week column compares with the 30 October fixing. Source: ECB.
| Pair | Fixing 6 Nov | Change vs 5 Nov | Change vs 30 Oct |
|---|---|---|---|
| EUR/USD | 1.1165 | -0.53% | -0.06% |
| GBP/USD | 1.3385 | -0.55% | -0.10% |
| USD/JPY | 158.33 | -0.08% | +0.69% |
| USD/CHF | 0.8189 | +0.12% | -0.49% |
| AUD/USD | 0.6871 | -1.85% | -2.18% |
| USD/CAD | 1.4066 | +0.72% | +0.69% |
| NZD/USD | 0.5544 | -1.39% | -1.64% |
Over five fixings, the Australian and New Zealand dollars took the heaviest losses. USD/CAD rose above 1.40. EUR/USD ended roughly where it began the period, after a midweek spike to 1.1267. Chart: AUD/USD on TradingView.
Central banks and politics
- BOJ: Governor Ueda said consumer prices are now around 3% and expected to rise further into early next year, per the investingLive wrap. The yen still fixed near 158.
- White House: Trump said chief of staff Susie Wiles will be replaced by Stephen Miller, investingLive reports.
- Canada: The US Treasury sanctioned Canadian money services firms over Iran-related transactions, according to Investing.com.
- China: The US is pressing Beijing to honor the Busan trade truce as rare earth shipments fall short, investingLive reports.
What to watch next
- Iran: Tehran is waiting for practical steps from Washington, per the Al-Arabiya report. Weekend headlines could move oil and the commodity currencies.
- US-China trade: Whether rare earth commitments under the Busan truce are met.
- Yields: Whether the post-payrolls rise in Treasury yields holds. Chart: DXY on TradingView.
- BOJ: Further comment from Ueda on prices rising into early next year.
How we make this article: software gathers the market data and the news from the sources linked in the article, then cross-checks them. AI writes the text. People choose the sources, set the rules and run the process. Not investment advice.