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Dollar remains mixed vs. rivals after U.S. economic reports

Published 04/05/2013, 11:10 AM
Updated 04/05/2013, 11:11 AM
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Investing.com - The U.S. dollar remained mixed against the other major currencies on Friday, after U.S. data painted a mixed picture of the state of the country's economic recovery, while worries over the financial situation in the euro zone persisted.

During U.S. morning trade, the dollar was lower against the euro, with EUR/USD climbing 0.63% to 1.3016.

The single currency gained ground against the dollar after the U.S. Bureau of Labor Statistics said the economy added 88,000 jobs in March, far less than the expected 200,000 increase, after 268,000 jobs were created the previous month.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, compared to expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Earlier Friday, 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 greenback was also lower against the pound, with GBP/USD advancing 0.74% to 1.5344.

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 higher against the yen, with USD/JPY gaining 0.83% to trade at 97.12, but lower against the Swiss franc, with USD/CHF retreating 0.69% to 0.9333.

Meanwhile, the yen remained under pressure after after the BoJ implemented on Thursday aggressive easing measures aimed at spurring growth and combating deflation.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD jumping 0.74% to 1.0203, AUD/USD declining 0.54% to 1.0377 and NZD/USD slipping 0.19% to 0.8407.

Statistics Canada said the economy cut 54,500 jobs in March, disappointing expectations for the creation of 9,000 jobs, after a 50,700 increase the previous month.

Canada's unemployment rate rose to 7.2% last month, from 7.0% in February. Analysts had expected the unemployment rate to remain unchanged in March.

In addition, official data showed that Canada's trade deficit widened unexpectedly in February, falling to CAD1 billion from a deficit of CAD0.8 billion the previous month. Analysts had expected the trade balance to swing into a surplus of CAD0.2 billion in February.

A separate report showed that the Ivey purchasing managers' index improved to 61.6 in March, from a reading of 51.1 the previous month, blowing past expectations for a rise to 52.0 and hitting a six-month high.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.33% to 82.57.

Also Friday, official data showed that the U.S. trade deficit narrowed unexpectedly in February, improving to USD43 billion from a deficit of USD44.5 billion the previous month. Analysts had expected the trade deficit to widen to USD44.6 billion in February.


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