U.S. Dollar Falls After U.S. Job Growth Slows
April 07 2017 - 05:10AM
RTTF2
The U.S. dollar dropped against its major rivals in the European
session on Friday, as data showed that the U.S. job growth slowed
sharply in March, casting uncertainty over the Fed rate
outlook.
Data from the Labor Department showed that employment in the
U.S. rose much less than anticipated in the month of March,
although the unemployment rate still fell to its lowest level in
almost ten years.
The Labor Department said non-farm payroll employment climbed by
98,000 jobs in March after surging up by a revised 219,000 jobs in
February.
Economists had economists an increase of about 180,000 jobs
compared to the jump of 235,000 jobs originally reported for the
previous month.
While meeting with Donald Trump, Chinese President Xi Jinping
urged for the development of bilateral trade and investment to
boost the relationship between the nations in a healthy and stable
manner.
"The meeting will be of great significance to charting China-US
relationship in a new era, advancing the development of bilateral
ties in a healthy and stable way from a new starting point, and
promoting peace, stability and prosperity in the Asia-Pacific
region and the world at large," Xinhua agency reported, quoting
Chinese Vice Foreign Minister Zheng Zeguang as saying.
The greenback was trading lower against its most major rivals in
the Asian session, as the U.S. military attack on an airbase in
Syria fueled concerns of an escalation in the Syrian civil war.
The greenback declined to 1.2451 against the pound, following an
8-day rise to 1.2412 at 6:30 am ET. The greenback is likely to find
support around the 1.26 region.
Data from the Office for National Statistics showed that he UK
visible trade deficit widened to a five-month high in February.
The visible trade deficit increased unexpectedly to GBP 12.46
billion in February from GBP 11.97 billion in the prior month. The
shortfall was forecast to narrow to GBP 10.9 billion.
Extending early slide, the greenback fell to near a 5-month low
of 110.09 against yen. On the downside, 108.00 is possibly seen as
the next support level for the greenback-yen pair.
Preliminary data from the Cabinet Office showed that Japan's
leading index dropped to a 3-month low in February.
The leading index fell more-than-expected to 104.4 in February
from 104.9 in January. This was the lowest score in three
months.
The greenback, having advanced to a 2-day high of 1.0068 against
the Swiss franc at 3:30 am ET, reversed direction and dropped to a
2-day low of 1.0021. If the greenback-franc extends slide, it may
locate support around the 0.97 level.
Reversing from an early more than 3-week high of 1.0623 against
the euro, the greenback weakened to 1.0667. Continuation of the
greenback's downtrend may see it challenging support around the
1.075 area.
Figures from Destatis showed that German exports grew at a
slower pace in February, while imports declined for the first time
in five months.
Exports climbed 0.8 percent month-on-month in February, slower
than January's 2.4 percent increase. Nonetheless, the increase was
in contrast to economists' forecast of 0.5 percent fall.
The greenback slipped to a 4-day low of 1.3342 against the
loonie and a 3-day low of 0.6992 against the kiwi, off its early
high of 1.3431 and a 2-day high of 0.6958, respectively. The
greenback is likely to find support around 0.72 against the kiwi
and 1.30 against the loonie.
Looking ahead, Canada Ivey PMI for March, U.S. wholesale
inventories data for March and consumer credit for February are
slated for release shortly.
At 10:00 am ET, Bank of Canada Governor Stephen Poloz and Bank
of Canada Senior Deputy Governor Carolyn Wilkins will hold a press
conference on Monetary Policy Report, in Ottawa.
At 11:15 am ET, Federal Reserve Bank of New York President
William Dudley is expected to speak on "The State of Financial
Regulation and the Potential for Reform" before a luncheon
organized by the Griswold Center for Economic Policy Studies,
Princeton University - 1, in New York.
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