Dollar strengthens broadly vs. rivals on strong data

Published 11/02/2012, 12:15 PM
Updated 11/02/2012, 12:16 PM
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Investing.com - The U.S. dollar pushed broadly higher against most of its major counterparts on Friday, as a string of positive U.S. economic data boosted demand for the greenback, while euro zone debt concerns continued to dampen market sentiment.

During U.S. morning trade, the dollar was sharply higher against the euro, with EUR/USD dropping 0.76% to 1.2843.

The greenback strengthened after the Bureau of Labor Statistics said that the U.S. economy added 171,000 jobs in October, far more than the expected 125,000 increase.

The previous month's figure was revised up from 114,000 to 148,000.

The report also showed that the U.S. unemployment rate ticked up to 7.9% last month from 7.8% in September, in line with expectations.

Meanwhile, the euro remained under pressure after Markit research group earlier said that Spain's manufacturing purchasing managers' index fell more-than-expected in October, ticking down to 43.5 from a reading 0f 44.6 the previous month.

Analysts had expected the manufacturing PMI to fall to 44.0 in October.

Separately, Italy's manufacturing PMI fell to 45.50 last month, from 45.70 in September, disappointing expectations for a reading of 45.90.

The greenback was also higher against the pound, with GBP/USD shedding 0.61% to 1.6132.

Markit said that the U.K. construction PMI improved to 50.9 in October from a reading of 49.5 the previous month.

Analysts had expected the construction PMI to fall to 49.1 in October.

Elsewhere, the greenback was higher against the yen and the Swiss franc, with USD/JPY rising 0.48% to hit 80.50, and USD/CHF climbing 0.80% to trade at 0.9393.

In the minutes of its October policy meeting, the Bank of Japan said earlier that while the Japanese economy continues to level off, the bank will maintain the current level of economic stimulus.

In addition, the greenback was steady to higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD dipping 0.03% to 0.9961, AUD/USD slipping 0.28% to 1.0371 and NZD/USD easing 0.06% to hit 0.8264.

In Canada, official data showed that the economy added 1,800 jobs in October, far less than the expected 5,000 increase, following a 52,100 rise the previous month.

Canada's unemployment rate remained unchanged at 7.4% last month, disappointing expectations for a drop to 7.0%.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.62%, to trade at 80.62.

Also Friday, official data showed that factory orders in the U.S. rose more-than-expected in September, ticking up 4.8% after a 5.1% drop the previous month.


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