Upbeat U.S. Jobs Data Buoys Dollar

Trading 05 avr 2019 Donner votre avis

The U.S. dollar strengthened against its major counterparts in the European session on Friday, erasing its decline, as the economy created more jobs than expected in March after weak figures in February.

Data from the Labor Department showed that non-farm payroll employment jumped by 196,000 jobs in March after edging up by a revised 33,000 jobs in February.

Economists had expected employment to increase by about 180,000 jobs compared to the uptick of 20,000 jobs originally reported for the previous month.

The unemployment rate remained at 3.8 percent in March, unchanged from February and in line with economist estimates.

The March jobs report pointed to ongoing strength in the labor market and reduced recent concerns about the economic outlook.

Investors welcomed continued indications of progress in U.S.-China trade talks after the latest round of high-level negotiations.

Chinese Vice Premier Liu He said the two sides have conducted fruitful consultations in the past two days, especially on important issues such as the text of economic and trade agreements.

The currency showed mixed performance against its major counterparts in the Asian session. While it rose against the yen and the franc, it dropped against the pound. Against the euro, it held steady.

The greenback appreciated to a 3-day high of 1.3026 against the pound, up by 0.7 percent from a low of 1.3122 seen at 1:00 am ET. The pair had ended Thursday's trading at 1.3068. Next key resistance for the greenback is seen around the 1.28 level.

Survey data from the Lloyds Bank subsidiary Halifax showed that UK house price inflation unexpectedly accelerated in March to its highest level in seven months.

The house price inflation rose to 3.2 percent from 2.8 percent in February. Economists had expected a lower rate of 2.1 percent.

The greenback spiked up to 1.0012 against the franc, its strongest since March 19, and was 0.3 percent higher from a low of 0.9985 touched at 5:00 pm ET. The greenback had closed yesterday's deals at parity rate against franc. The greenback is seen finding resistance around the 1.02 level.

The greenback bounced off to 1.1217 against the euro, after a brief fall to 1.1245 immediately after the release of the data. Should the greenback continues its uptrend, 1.11 is possibly seen as its next resistance level.

Preliminary figures from the Federal Statistical Office showed that Germany's industrial production rose in February after stagnating at the start of the year.

Industrial production grew a price, seasonally and calendar adjusted 0.7 percent, which slightly slower than the 0.8 percent gain economists had predicted.

The greenback added 0.3 percent to a 3-week high of 111.82 against the yen, following a decline to 111.53 soon after NFP report. At Thursday's close, the pair was valued at 111.66. Continuation of the greenback's uptrend is likely to see it challenging resistance around the 113.00 mark.

Data from the Ministry of Internal Affairs and Communications showed that Japan household spending rose 1.7 percent on year in February, coming in at 271,232 yen.

That missed expectations for a gain of 1.9 percent following the 2.0 percent increase in January.

The greenback was up 0.4 percent at a weekly high of 1.3403 against the loonie, after having dropped to 1.3349 at 3:00 am ET. The pair was quoted at 1.3358 when it finished deals on Thursday. Further uptrend may take the greenback to a resistance around the 1.36 region.

The U.S. currency climbed to 0.7098 against the aussie, after falling to a 4-day low of 0.7132 at 8:30 am ET. The greenback was trading at 0.7111 per aussie at yesterday's close. The greenback is likely to find resistance around the 0.69 level, if it climbs again.

Extending early rally, the greenback firmed to near a 2-month peak of 0.6721 against the kiwi. The pair had finished Thursday's trading session at 0.6752. The greenback is poised to find resistance around the 0.66 level.

The U.S. consumer credit for February is slated for release at 3:00 am ET.


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