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Dollar holds steady vs. rivals after U.S. employment data

Published 06/06/2014, 08:44 AM
Dollar little changed against counterparts after U.S. data
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Investing.com - The dollar held steady against the other major currencies on Friday, after data showed that the U.S. economy added less jobs than expected last month but that the unemployment rate remained unexpectedly unchanged.

The dollar was steady against the euro, with EUR/USD down 0.04% to 1.3656.

The U.S. Labor Department said the economy added 217,000 in May, missing expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

The private sector added 216,000 jobs last month, exceeding expectations for a 210,000 gain, after a downwardly revised 270,000 increase in April.

The report also showed that the U.S. unemployment rate remained unchanged at 6.3% last month, compared to expectations for a rise to 6.4%.

Meanwhile, the euro remained under pressure after the European Central Bank on Thursday lowered its benchmark interest rate to a record-low 0.15% from 0.25% and said it will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs) to support bank lending in the euro zone.

Earlier Friday, official data showed that Germany's trade surplus widened to €17.7 billion in April, from €15.0 billion in March, whose figure was revised up from a previously estimated surplus of €14.8 billion. Analysts had expected the trade surplus to widen to €15.2 billion in April.

The pound was little changed against the dollar, with GBP/USD easing up 0.03% to 1.6824.

Official data earlier showed that the U.K. trade deficit widened to £8.92 billion in April, from £8.29 billion in March, whose figure was revised from a previously estimated deficit of £8.48 billion. Analysts had expected the trade deficit to widen to £8.65 billion in April.

Separately, the Bank of England said consumer inflation expectations for the next year fell to 2.6% in the first quarter, from 2.8% in the three months to December.

The dollar was steady against the yen, with USD/JPY inching 0.04% lower to 102.33 and fractionally higher against the Swiss franc, with USD/CHF up 0.09% to 0.8921.

In Switzerland, data showed that consumer price inflation rose 0.3% last month, after a 0.1% uptick in April, exceeding expectations for a 0.2% gain.

The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.04% to 0.9340, NZD/USD gaining 0.39% to 0.8536 and USD/CAD easing up 0.01% to 1.0923.

In a report, Statistics Canada said the economy added 25,800 in May, just above expectations for a 25,000 rise, after a 28,900 decline the previous month.

Canada's unemployment rate rose to 7.0% last month, from 6.9% in April. Analysts had expected the rate to remain unchanged in May.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.03% to 80.35.

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