© Reuters. The dollar rose from session lows on Tuesday.
Investing.com – The dollar edged higher Tuesday as better-than-expected labor market data and signs of a ramp-up in U.S.-China trade fears prompted traders to pile into the greenback.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.10% to 95.22, from a session low of 94.84.
The U.S. Labor Department’s latest (JOLTs) report, a measure of labor demand, showed job openings in August improved to about 6.939 million, beating expectations of 6.646 million.
The surge in job openings to the highest level since 2000, pointing to underlying strength in the U.S. economy, added to the narrative that the United States would fare better in a trade war with China that looks set to intensify.
China plans to ask the World Trade Organization (WTO) it wants to impose $7 billion a year in sanctions on the United States, citing Washington’s non-compliance with a ruling in a dispute over U.S. dumping duties.
The dollar was also helped by an intraday reversal in sterling, as optimism over a Brexit deal eased after the European Union reportedly warned Britain against expectating too much in the way of concessions over the bloc’s so-called red lines on Brexit, according to the Evening Standard.
fell 0.12% to $1.3010, erasing earlier gains, which had followed strong U.K. jobs and and an extension to Bank of England Governor Mark Carney’s tenure until January 2020.
The pound surged to five-week highs on Monday after EU chief Brexit negotiator Michel Barnier said that a Brexit deal could be reached in six to eight weeks.
fell 0.03% to $1.1589, shrugging off showing that investors remained optimistic about the health of the eurozone.
Elsewhere, fell 0.23% as rising oil prices boosted the Canadian dollar, amid concerns that a severe storm could disrupt domestic crude output.
Traders were also monitoring efforts by Canada and the United States to strike an agreement on a revamp of the North American Free Trade Agreement (NAFTA) as talks resumed.
Elsewhere, the risk-sensitive rose 0.43% to Y111.60.
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