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Dollar pushes higher as U.S. data supports

Published 02/05/2016, 10:36 AM
© Reuters.  Dollar extends gains vs. other majors on U.S. jobs report
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Investing.com - The dollar pushed higher against the other major currencies on Friday, after the release of mostly positive U.S. employment data.

USD/JPY gained 0.39% to 117.23.

The Labor Department said the U.S. economy added 151,000 jobs in January, compared to expectations for an increase of 190,000. The economy created 262,000 jobs in December, whose figure was revised from a previously estimated 292,000 gain.

The U.S. unemployment rate ticked down to 4.9% last month from 5.0% in December. Analysts had expected the unemployment rate to remain unchanged in January.

The report also showed that average hourly earnings rose 0.5% in January, compared to expectations for a 0.3% gain, after a flat reading in December.

Separately, data showed that the U.S. trade deficit widened to $43.36 billion in December from $42.23 billion in November, whose figure was revised from a previously estimated deficit of $42.40 billion.

Analysts had expected the trade deficit to hit $43.00 billion in December.

EUR/USD dropped 0.83% to trade at 1.1115.

Earlier Friday, data showed that German factory orders fell by 0.7% in December, compared to expectations for a downtick of 0.5%, after a 1.5% increase the previous month.

Elsewhere, the dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.78% at 1.4474 and with USD/CHF climbing 0.49% to 0.9978.

Meanwhile, USD/CAD advanced 0.46% to trade at 1.3818, after data showed that the number of employed people in Canada fell by 5,700 in January, disappointing expectations for an increase of 5,500 and after a revised 1,300 gain the previous month.

Canada’s unemployment rate ticked up to 7.2% last month from 7.1% in December, compared to expectations for an unchanged reading.

A separate report showed that Canada’s trade deficit narrowed to C$0.59 billion in December from C$1.59 billion in November, whose figure was revised from a previously estimated deficit of C$1.99 billion.

Analysts had expected the trade deficit to widen to C$2.20 billion in December.

The Australian and New Zealand dollars pushed lower, with AUD/USD down 1.27% at 0.7108 and with NZD/USD tumbling 1.33% to 0.6632.

In its monthly policy statement, the Reserve Bank of Australia left its November growth forecast unchanged, predicting the economy would grow at an average rate of 2.5% in 2016 and 3% in 2017.

Separately, the Australian Bureau of Statistics said retail sales were flat in December.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.76% at 97.23, off the previous session’s three-and-a-half month low of 96.27.

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