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Dollar steady vs. rivals after strong U.S. employment data

Published 05/02/2014, 10:47 AM
Dollar holds steady vs. counterparts after U.S. data
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Investing.com - The dollar was mostly steady against the other major currencies on Friday, as investors digested the release of strong U.S. employment data which fuelled further optimism that the recovery of the U.S. economy is on track.

The dollar was steady against the euro, with EUR/USD down 0.04% to 1.3865.

The greenback strengthened broadly after the Labor Department said the U.S. economy added 288,000 jobs in April, beating expectations for a 210,000 increase. March's figure was revised up to a 203,000 rise from a previously estimated 192,000 gain.

The private sector added 273,000 last month, more than the expected 210,000 rise. In March, the number of private sector jobs was revised up to a 202,000 increase a previously estimated 192,000 rise.

The report also showed that the U.S. unemployment rate fell to 6.3% in April, from 6.7% the previous month, compared to expectations for a fall 6.6%.

Separately, data showed that U.S. factory orders rose 1.1% in March, less than the expected 1.4% gain, after a 1.5% rise in February, whose figure was revised down from a previously estimated 1.6% increase.

In the euro zone, data showed that the unemployment rate remained unchanged at 11.8% in March, confounding expectations for a rise to 11.9%. March's figure was revised down from a previously estimated rate of 11.9%.

Separately, Markit said Germany's manufacturing purchasing managers' index slipped to 54.1 last month, from a reading of 54.2 in March. Analysts had expected the index to remain unchanged in April.

In Italy however, the manufacturing PMI rose to a 35-month high of 54.0 last month, from a reading of 52.4 in March, while Spain's manufacturing PMI ticked down to 52.7 in April, from a reading of 52.8 the previous month.

The final euro zone manufacturing PMI ticked up to 53.4 in April, from 53.3 in March. Analysts had expected the index to remain unchanged last month.

The pound was lower against the dollar, with GBP/USD slipping 0.12% to 1.6877.

Earlier Friday, Markit said the U.K. construction PMI fell to 60.8 in April, from a reading of 62.5 the previous monh. Analysts had expected the index to tick down to 62.0 last month.

The dollar was little changed against the yen and the Swiss franc, with USD/JPY dipping 0.04% to 102.29 and with USD/CHF easing 0.01% to 0.8792.

In Japan, data showed that household spending rose 7.2% in March compared to a year earlier, after a 2.5% drop the previous month. Analysts had expected household spending to rise 1.0% in March.

Meanwhile, a report showed that the Swiss SVME PMI rose to 55.8 last month, from a reading of 54.4 in March, compared to expectations for a rise to 55.5.

The greenback was mixed against the Australian, New Zealand and Canadian dollars, with AUD/USD down 0.02% to 0.9270, NZD/USD rising 0.36% to 0.8666 and USD/CAD down 0.17% to 1.0943.

In Australia, official data showed that producer price inflation rose 0.9% in the first quarter, more than the expected 0.6% gain, after a 0.2% uptick in the three months to December.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% to 79.58.

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