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Dollar mixed vs. rivals after E.Z. data, eyes on U.S. jobs report

Published 04/05/2013, 06:05 AM
Updated 04/05/2013, 06:06 AM
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Investing.com - The U.S. dollar was mixed against the other major currencies on Friday, as weak euro zone data added to concerns over the outlook for growth in the single currency bloc, while markets awaited key U.S. employment data later in the day.

During European morning trade, the dollar was higher against the euro, with EUR/USD slipping 0.14% to 1.2917.

The single currency came under pressure after official data showed that the euro zone's gross domestic product contracted by 0.6% in the fourth quarter, in line with expectations.

A separate report showed that retail sales in the euro zone fell 0.3% in February, more than the expected 0.2% decline, after a 0.9% rise the previous month.

In Germany, data showed that factory orders rose 2.3% in February, beating expectations for 1.2% rise, after a 1.6% decline the previous month.

The data came after European Central Bank President Draghi voiced concern on Thursday over the euro zone’s economic outlook, saying that the recovery in the second half of the year is subject to “downside risks”.

He added that the bank would closely monitor incoming data and was ready to act to cut rates if needed.

The greenback was steady against the pound, with GBP/USD inching up 0.02% to 1.5235.

Data earlier showed that house prices in the U.K. rose 0.2% in March, in line with expectations, after a 0.5% increase the previous month.

Elsewhere, the greenback was lower against the yen, with USD/JPY slipping 0.18% to trade at 96.15, but higher against the Swiss franc, with USD/CHF adding 0.10% to 0.9405.

The Swiss National Bank said its foreign currency reserves rose to CHF438.3 billion last month, from CHF430 billion in February.

Meanwhile, the yen remained under pressure after after the BoJ implemented on Thursday aggressive easing measures aimed at spurring growth and combating deflation in the world’s third largest economy.

The greenback was steady to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD easing up 0.06% to 1.0135, AUD/USD edging 0.09% lower to 1.0425 and NZD/USD slipping 0.12% to 0.8412.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.02% to 82.83.

Later in the day, the U.S. was to release a government report on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings and the trade balance.


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