Dollar Posts Best Day in Two Weeks, Jobs Data Ahead

The dollar posted its best daily performance in two weeks. Geopolitical risks and position squaring ahead of the US jobs report were cited as factors. The report is expected to show payrolls rising by 80,000, with the unemployment rate steady at 4.2%.

Brent crude rose above $80 a barrel. Talks between Iran and Oman to reopen the Strait of Hormuz have not yielded a durable deal, according to reports. Some Iranian officials have demanded conditions that the US is unlikely to accept. The uncertainty has pushed oil prices higher.

USD/JPY climbed to near 160, building on gains from earlier in the week. The pair has recouped about half of the losses from the coordinated intervention in late April. The wide interest rate gap between the Federal Reserve and the Bank of Japan continues to support carry trades. The overnight indexed swap market prices a 60% probability of a BOJ rate hike by September.

Gold fell.