The dollar pushed higher in early European trade Friday, reprising its role as a safe haven amid renewed tensions between the U.S. and China, but gains are likely to be capped by the stalemate in the U.S. Congress over the latest stimulus package ahead of the release of the official monthly jobs report. At 3:10 AM ET (0710 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.2% at 92.995, not far removed from Thursday's two-year low of 92.483. U.S. President Donald Trump ratcheted up already-heightened tensions with Beijing, and fueled some demand for the dollar, by announcing late Thursday that his administration was banning U.S. transactions with two popular Chinese apps, Tencent's WeChat and ByteDance's Tiktok.
Trade data out of China and U.S nonfarm payrolls are the key stats on the day. Expect geopolitics to also influence, however.