· The dollar edged up on Friday, on track for a weekly gain against a basket of currencies, as the passage of a bill to temporarily extend U.S. government funding raised investors' optimism that a tax reform bill would also pass.
The dollar index, which gauges the greenback against a basket of six major rivals, was up slightly on the day at93.830 , up 1 percent for the week. But it was still down 8.2 percent for a year plagued by U.S. policy uncertainty.
The euro inched down 0.1 percent to $1.1766 , around its lowest levels since Nov. 22, as traders waited to see if British Prime Minister Theresa May has finally clinched an elusive deal with Irish and EU officials on how they would run their post-Brexit land border on the island of Ireland.
An agreement would remove the last obstacle for opening free-trade talks with the European Union. May is likely to meet European Union chief executive Jean-Claude Juncker before dawn (0600 GMT) in Brussels. The euro was on track to shed 1.1 percent for the week, but is still up nearly 12 percent so far in 2017.
· U.S. job growth likely increased at a strong clip in November and wages rebounded as the distortions from the recent hurricanes faded, creating a portrait of a healthy economy that analysts say does not require the kind of fiscal stimulus that President Donald Trump is proposing.
According to a Reuters survey of economists, the Labor Department’s closely watched employment report on Friday will likely show that nonfarm payrolls rose by 200,000 jobs last month after surging 261,000 in October.
The unemployment rate is forecast to be unchanged at a 17-year low of 4.1 percent. Average hourly earnings are expected to have risen 0.3 percent in November after being flat the prior month. That would lift the annual increase in wages to 2.7 percent from 2.4 percent in October.
· Forex traders were also awaiting the closely watched U.S. non-farm payrolls report later in the day, which is expected to show 200,000 new jobs were created in November, according to a Reuters poll.
· The Federal Reserve, the top U.S. banking regulator, on Thursday proposed changes to its annual bank “stress testing” process, aiming to give lenders significantly more information about how their portfolios may perform during potential market shocks.
· When President Donald Trump told the Palestinian president of his intention to recognise Jerusalem as Israel’s capital, he assured him a peace plan being put together would please the Palestinians, officials said, an apparent effort to limit fallout over his break with longtime U.S. policy.
· The European Commission said on Friday enough progress had been made in Brexit negotiations with Britain and that a second phase of negotiations should begin, ending an impasse over the status of the Irish border.
· Chinese dollar-denominated exports rose 12.3 percent year-over-year for the month of November, easily topping the 5 percent expected by a Reuters poll.
Similarly, November's dollar-denominated imports rose 17.7 percent against the year-ago period, compared to an11.3 percent gain expected by a Reuters poll.
Overall, China's November trade surplus was $40.21 billion — above an expected surplus of $35 billion, Reuters said.
· Oil prices dipped on Friday, weighed down by a strengthening U.S. dollar, although China’s relentless thirst for crude and OPEC-led supply cuts prevented further falls.
U.S. West Texas Intermediate (WTI) crude futures were at $56.58 a barrel at 0714 GMT, down 11 cents, or 0.2percent from their last settlement.
Brent crude futures, the international benchmark for oil prices, were down 8 cents, or 0.1 percent, at $62.12 a barrel.
Reference: Reuters, CNBC
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