Forex - U.S. dollar surges on NFP figure

Published 01/06/2012, 09:09 AM
Updated 01/06/2012, 09:11 AM
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Investing.com -  The U.S. dollar advanced against its major counterparts on Friday as the Non Farm Payrolls advanced 200,000 beating estimates and unemployment rate fell to 8.5% surprising economists.  

During early session U.S. trade, the greenback traded higher against the euro, with EUR/USD falling 0.32% to hit 1.2750.  

The single currency was depressed earlier by a combination of Italy's UniCredit selling stock to increase capital, a French bond auction resulting in higher yields, and overnight European Central Bank deposits hitting all time highs.  

Dollar bullish news from the U.S. included a very positive NFP report indicating 200,000 new jobs created and a falling unemployment rate to 8.5% sent the dollar surging higher.  

The U.S. dollar was up against the pound, with GBP/USD falling 0.12% to hit 1.5477.  

An index of executive and consumer sentiment in the euro zone dropped to 93.3 in December from a revised 93.8 in November adding to the negative sentiment of the single currency.  

Euro zone hope is pinned to German Chancellor Angela Merkel and French President Nicolas Sarkozy meeting in Berlin on January, 9th to hash out a plan to save the region's economy prior to the summit at the end of the month.    

Earlier, The Institute for Supply Management stated that its nn manufacturing purchasing manager's index only climbed 0.6 points in December, missing analysts estimates of 1.0 points.  

The greenback was higher against the yen and Swiss franc with USD/JPY up by 0.19% to 77.27 and USD/CHF adding 0.40% to hit 0.9563.  

In addition the greenback was higher against its Canadian and  Australian but lower New Zealand cousins with USD/CAD climbing  0.34% to hit 1.0227, AUD/USD dropping 0.22% to hit 1.0237 and NZD/USD climbing 0.16% to 0.7820.  

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, added 0.19% to hit 81.44.  

Investors are anxiously awaiting the start of talks between the German Chancellor and French President on Monday.





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