© Reuters. © Reuters.

Investing.com — The dollar was higher against haven currencies and lower against higher-yielders early Friday in Europe, holding gains made Thursday in broad rally in risk assets after signs of robust job creation in the U.S. last month.

The ADP (NASDAQ:) payrolls report blew past expectations, with a 195,000 increase in private jobs in the month, well ahead of forecasts for a 148,000 increase. It was followed by a stronger-than-expected non-manufacturing PMI report from the Institute of Supply Management. The news bolstered optimism in markets that were already rising on the back of news that China and the U.S. will resume trade talks in October.

Taken together, the news chipped away at fears of a recession without denting confidence that both the Federal Reserve and European Central Bank will announce significant easings of monetary policy later this month.

Risk assets seem set for further gains later today if the official labor market report, due at 8:30 AM ET (1230 GMT) today, confirms that trend.

By 2:45 AM ET, the dollar was 0.1% higher against both the and , while giving up ground against the , and .

, meanwhile, was consolidating gains after a rising more than 3 cents this week from trough to peak as Prime Minister Boris Johnson’s plans to take the U.K. out of the EU at all costs by Oct. 31 have come unstuck. Overnight reports suggested that the two biggest opposition in parties in Parliament, the left-wing Labour Party and the Scottish National Party, will push for a general election on Oct. 29, two days before Brexit day.

The dollar also weakened against many emerging market currencies, most notably falling to its lowest in nearly two weeks against the .

However, not all were convinced of the risk rally’s durability. ING analyst Robert Carnell was dismissive of the markets “taking a pre-weekend happy-pill”.

“While talks are better than no talks, ask yourself this question: ‘Is the US about to scale back its demands on China to secure a trade deal?’ If not, ‘Is China about to relinquish its stance on state-owned enterprises or intellectual property?’” Carnell said in a morning note. “If the answer to either of these questions is “No”, then this is not a rally you should probably be chasing.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.