Dollar ticks up after private sector jobs data, bitcoin sits near record high

The dollar ticked up on Wednesday (Oct 30) after stronger-than-expected private sector jobs data, though it remained off a three-month peak, while bitcoin sat close to a record high as traders raised their bets on a Donald Trump victory in next week's election.

The US dollar edged up on Wednesday (Oct 30) after stronger-than-expected private sector jobs data, though it remained off a three-month peak, while bitcoin sat close to a record high as traders raised their bets on a Donald Trump victory in next week’s election.

The pound fell on the day of the new Labour government’s first budget as British bonds rallied, while the euro wavered as inflation and growth data from the eurozone trickled in.

The US dollar index, which measures the currency against six major rivals including the yen and euro, was last up 0.16 per cent at 104.41. The dollar was flat at 153.15 yen.

The US currency rose after data showed US private payrolls growth surged in October, despite fears of temporary disruptions from hurricanes and strikes. The index rose to its highest since July 30 at 104.63 on Tuesday before finishing the day almost flat.

Separate data showed the US economy grew at an annualised rate of 2.8 per cent in the third quarter, slightly lower than the 3 per cent expected by economists.

“On the whole, today’s data reaffirms that the US is indeed still on course for a ‘soft landing’, with growth remaining resilient, as price pressures continue to subside,” said Michael Brown, senior research strategist at Pepperstone.

Mixed US indicators overnight, showing a loosening US jobs market but a confident consumer, provided little clarity on the outlook for Federal Reserve rates, allowing the greenback to drift lower with Treasury yields.

Recently though, economic readings have pointed to a resilient jobs market and economy, spurring traders to pare back their bets on rate cuts.

Both the dollar and US bond yields have also been buoyed in recent days by rising speculation in markets and on some betting platforms for a victory in the Nov 5 presidential election for Republican candidate Trump, whose tariff and immigration policies are seen as inflationary.

That helped leading cryptocurrency bitcoin surge to near its all-time high from March at US$73,803.25, as Trump has vowed to make the United States “the crypto capital of the planet”.

The token last changed hands at about US$72,026, after pushing as high as US$73,609.88 in the previous session.

Sterling was last down 0.42 per cent at US$1.2961, after earlier touching a nine-day peak, as British finance minister Rachel Reeves delivered the Labour government’s first budget on Wednesday.

The pound was dragged lower by a drop in British bond yields, which have risen sharply in recent weeks.

Reeves, along with Prime Minister Keir Starmer, has reiterated the need for tough fiscal measures to help improve Britain’s public finances.

They are seeking to retain the confidence of investors, two years after then-prime minister Liz Truss’ tax-cutting plans sparked a crisis in the bond market.

“Today’s budget will be a clear focus,” said Jane Foley, head of FX strategy at Rabobank. “For Chancellor Reeves, PM Starmer, gilts, the pound and the whole UK economy, there is potentially a huge amount resting on this budget.”

The euro was last flat at US$1.0814. It rose slightly after German growth and regional inflation data came in stronger than expected, causing traders to trim their bets on an outsized rate cut from the European Central Bank in December, but fell after the US private payrolls data.

Separate figures on Wednesday showed the eurozone economy grew 0.4 per cent in the third quarter, more than the 0.2 per cent expected by economists.

The Aussie dollar dropped as low as US$0.6537 for the first time since Aug 8, after data showed inflation slowed to a 3-1/2-year low, before trading 0.2 per cent weaker at US$0.6573. The Reserve Bank of Australia’s preferred inflation gauge, the trimmed mean measure, slowed to 3.5 per cent from 4.0 per cent in the third quarter, but service-sector inflation remained elevated.

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