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Dollar index holds near 12-year peak after strong U.S. data

Published 01/09/2015, 08:44 AM
Dollar remains at multi-year highs as nonfarm payrolls support
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Investing.com - The dollar remained near 12-year highs against the other major currencies on Friday, after data showed that the U.S. economy added more jobs than expected last month, fuelling further optimism over the strength of the country's job market.

In a report, the Labor Department said the U.S. economy added 252,000 jobs in December, exceeding expectations for an increase of 240,000. November's figure was revised to a 353,000 gain from a previously estimated 321,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 5.6% last month from 5.8% in November, compared to expectations for a decline to 5.7%.

The report came a day after data showed that U.S. initial jobless claims fell by 4,000 to 294,000 last week, just slightly above expectations of 290,000, and two days after data showed that the U.S. private sector added a larger-then-forecast 241,000 jobs in December.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.12% at 92.66, not far from Thursday's 12-year high of 92.76.

EUR/USD held steady near nine-year lows at 1.1788.

The single currency remained under pressure after data on Wednesday showed that the annual rate of euro zone inflation fell by 0.2% in December, declining for the first time since October 2009.

The fall in consumer prices added to expectations that the European Central Bank could implement quantitative easing as soon as its next meeting on January 22.

Sterling eased off Thursday's 18-month lows of 1.5032, with GBP/USD rising 0.24% to 1.5122.

The U.K. Office for National Statistics earlier reported that manufacturing production rose 0.7% in November, beating expectations for a 0.3% gain, after a 0.7% fall the previous month.

On the other hand, U.K. industrial production ticked down 0.1% in November, data showed on Friday, confounding expectations for an increase of 0.2%. October's figure was revised to a 0.3% slip from a previously estimated 0.1% fall.

A separate report showed that the U.K. trade deficit narrowed to £8.85 billion in November from £9.84 billon in October, whose figure was revised from a previously estimated deficit of £9.62 billion. Analysts had expected the trade deficit to narrow to £9.40 billion in November.

Elsewhere, the dollar slipped lower against the yen, with USD/JPY down 0.23% to 119.38, while USD/CHF edged up 0.10% to 1.0193.

The commodity-exposed Australian, New Zealand and Canadian dollars were mixed, still hovering near multi-year lows. AUD/USD gained 0.36% to 0.8150, NZD/USD edged down 0.11% to trade at 0.7815 and USD/CAD rose 0.23% to 1.1859.

In Canada, official data showed that the number of employed people declined by 4,300 last month, condounding expectations for a 15,000 rise, after a 10,700 drop in November.

Canada's unemployment rate remained unchanged at 6.6% in December, in line with expectations.

A separate report showed that Canada's building permits dropped by 13.8% in November, compared to expectations for a 1.0% rise, after a revised 2.1% increase in October.

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