Dollar Rallies As U.S. Jobs Growth Beats Forecast; Jobless Rate Near 50-yr Low
May 03 2019 - 5:33AM
RTTF2
The U.S. dollar extended its early rally against its major
counterparts in the European session on Friday, as the U.S. economy
added more jobs than expected in April and the unemployment rate
fell to its lowest level in nearly fifty years, supporting hopes
for Fed adopting a patient stance on future rate hike moves.
Data from the Labor Department showed that non-farm payroll
employment surged up by 263,000 jobs in April following a
downwardly revised increase of 189,000 jobs in March.
Economists had expected employment to climb by 185,000 jobs
compared to the addition of 196,000 jobs originally reported for
the previous month.
The unemployment rate subsequently fell to 3.6 percent in April
from 3.8 percent in March, while economists had expected the rate
to remain unchanged.
The currency was steady against its major counterparts in the
Asian session, excepting the franc.
The greenback appreciated to a 3-day high of 1.2987 against the
pound, after falling to 1.3043 at 10:15 pm ET. The pair was valued
at 1.3023 at yesterday's close. The greenback is seen finding
resistance around the 1.28 level.
Survey data from IHS Markit showed that UK services sector
expanded in April, after contracting in the previous month, even as
demand remained subdued.
The IHS Markit/CIPS UK Services Purchasing Managers' Index, or
PMI, climbed to 50.4 from March's 32-month low of 48.9. Economists
had forecast a score of 50.4.
The greenback climbed to a 4-day high of 1.0214 against the
franc, from a low of 1.0184 touched at 5:00 pm ET. Next key
resistance for the greenback is seen around the 1.03 level.
Figures from the Federal Statistical Office showed that
Switzerland's consumer price inflation remained steady in
April.
The consumer price index rose 0.7 percent year-on-year in April,
same as in March. Economists had expected the inflation to remain
at 0.7 percent.
Having dropped to 1.1178 against the euro at 8:45 pm ET, the
greenback reversed direction and climbed to a weekly high of
1.1135. On the upside, 1.10 is possibly seen as the next resistance
level for the greenback.
Preliminary data from Eurostat showed that Eurozone's consumer
price inflation accelerated more-than-expected in April to its
highest level in five months, led by higher energy prices and
services costs.
The consumer price index rose 1.7 percent year-on-year following
a 1.4 percent increase in March. Economists had forecast 1.6
percent inflation. The greenback that closed yesterday's trading at
111.49 against the yen spiked up to a 3-day high of 111.68. The
next key resistance for the greenback is likely seen around the
113.00 region.
The greenback strengthened to a weekly high of 1.3489 against
the loonie and an 8-day high of 0.6606 against the kiwi from
yesterday's closing values of 1.3474 and 0.6615, respectively. If
the greenback rises further, 1.375 and 0.65 are likely seen as its
next resistance levels against the loonie and the kiwi,
respectively
The greenback hovered at a 4-month high of 0.6985 against the
aussie, up from Thursday's closing value of 0.6997. The greenback
is poised to test resistance around the 0.68 level.
The U.S. ISM services PMI for April is scheduled for release at
10:00 am ET.
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