* Euro and yen ready for weekly growth> 1%
* Sterling suffers from the AstraZeneca vaccine not working.
* Graphics: World exchange rates https://tmsnrt.rs/2RBWI5E
SINGAPORE, Apr 9 (Reuters) – The dollar rose marginally on Friday, but was in for its weakest week of the year as strong European data, unexpectedly weak US employment data and a resolutely accommodating Federal Reserve prompted investors to cut dollar rates. …
The euro and yen are also poised for their biggest weekly percentage gains in four and five months, respectively, while the dollar index, which fell 0.9% this week, is near a two-week low of 92.171.
“In short, the energy got out of the dollar rebound in the first quarter, as well as the sale of bonds,” said Keith Jukes, head of monetary strategy at Societe Generale.
In the Asian session, the euro fell 0.1%, but held above its 200-day moving average at $ 1.1900, while the yen broke the 20-day moving average and held at 109.32 per dollar. Both currencies are up 1.3% against the dollar this week.
The euro is also up more than 2% against the pound this week, bouncing from an annual low of 84.70p on Monday to 86.81p, its highest level since February, amid growing concerns over UK dependence on the AstraZeneca vaccine. … The pound sterling fell sharply against the dollar this week and fell 0.7% to hit $ 1.3723.
The vaccine, developed at Oxford University and considered to be the leader in the global vaccination race, suffers from safety and supply issues. Australia and the Philippines have restricted the use of the frame, the African Union has scrapped plans to buy it, and Hong Kong has shelved it.
The Australian and New Zealand dollars are hovering in the upper half of a range that has held them for about two weeks.
Slightly cautious sentiment in equity markets and a warning from Australia’s central bank of excessive credit risk weakened the Australian dollar, which fell about 0.4% to $ 0.7623, up 0.4% over the week. The kiwi fell 0.3% to $ 0.7036 and rose 0.3% on the week.
The pause in the dollar rally follows a solid rebound from the dollar’s weakest year since 2017. Rising Treasury yields and a growing consensus that the US economy can lift the world out of the pandemic lifted the dollar index 3.6% last quarter. best quarter in nearly three years.
However, after a series of strong data, data on Thursday showed that US jobless claims rose unexpectedly.
Fed speakers also promised again that monetary policy would be very simple. Chairman Jerome Powell said policy won’t change until there is at least a month-long string of good data, while board member James Bullard said the Fed shouldn’t even discuss the change until it’s clear. that the pandemic is over.
Davis Hall, head of capital markets at Indosuez in Asia, said the coming weeks and months will face a tough test as markets and the Fed grapple with higher inflation and possibly a faster recovery in Europe.
Meanwhile, the rise in prices at the plant in Europe accelerated in the wake of unexpectedly strong growth in business activity.
“We are very skeptical that this will remain a sustained bounce in the dollar,” Hall said by telephone from Hong Kong.
“The dollar / yen may rally and the dollar / Swiss may rally due to the interest rate differential, but if the US rally is strong, there is no certainty that it will benefit the dollar, provided that Europe can start its own success and momentum vaccination. is the key.
“We are letting the dollar rally, but we are going to use its rebounding power to diversify away from dollar risks, and we love Asian currencies.”
(Reporting by Tom Westbrook; editing by Ana Nicholasi da Costa and Sri Navaratnam)