Dollar remains broadly higher after U.S. jobs report

Published 05/08/2015, 08:44 AM
© Reuters.  Dollar holds gains vs. counterparts after tepid U.S. report
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Investing.com - The dollar remained broadly higher against a basket of other major currencies on Friday, after data showed that the U.S. economy created slightly less jobs than expected last month, while unemployment declined in line with market expectations.

The Department of Labor said that the U.S. economy added 223,000 jobs last month, below expectations for an increase of 224,000. The number of jobs added in March was revised to 85,000 from a previously estimated 126,000.

The report also showed that the U.S. unemployment rate ticked down to 5.4% in April from 5.5% the previous month, in line with expectations.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was rose 0.21% to 94.98.

The pound pulled away from two-and-a-half month highs of 1.5245 hit earlier in the session, with GBP/USD still up 0.78% to 1.5365.


Sterling remained support after the Conservatives won more than half the seats in the Parliament on Thursday, outnumbering Labour and allowing David Cameron to end a coalition with the Liberal Democrats and govern alone.

Earlier Friday, industry data showed that U.K. house prices rose 1.6% last month, exceeding expectations for a 0.4% gain. March's figure was revised to an increase of 0.6% from a previously estimated 0.4% rise.

Separately, the Office for National Statistics said that the U.K. trade deficit narrowed to £10.12 billion in March from £10.80 billion, whose figure was revised from a previously estimated deficit of £10.34 billion. Analysts had expected the trade deficit to narrow to £9.80 billion in March.

The euro pushed lower, with EUR/USD down 0.63% to 1.1965.

Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY rising 0.32% to 120.12 and with USD/CHF climbing 0.57% 0.9271.

The minutes of the Bank of Japan's April policy meeting earlier showed that a majority of board members were in favor of continuing the bank's agressive asset-buying program.

However, board member Takahide Kiuchi called on the BOJ to immediately cut its annual bond purchase target by almost half to ¥45 trillion a year. But his proposal was defeated by a 8-1 vote.

In Switzerland, data on Friday showed that consumer prices fell 0.2% in April, disappointing expectations for a 0.1% uptick, after a 0.3% rise the previous month.

The Australian dollar erased earlier gains, with AUD/NZD down 0.13% to 0.7897. The Reserve Bank of Australia's earlier said in its monthly policy statement that it is open to further interest rate cuts amid concerns over slowing Chinese growth and weak business investment in Australia.

Meanwhile, NZD/USD slipped 0.17% to 0.7435 and USD/CAD held steady at 1.2126.

Statistics Canada reported on Friday that the number of employed people declined by 19,700 in April, compared to expectations for a 5,000 fall, after an increase of 28,700 the previous month.

The report also showed that Canada's unemployment rate held steady at 6.8% last month, confounding expectations for an uptick to 6.9%.

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