Forex - Dollar firms as jobs market shows signs of life

Published 01/06/2012, 03:47 PM
Updated 01/06/2012, 03:52 PM
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Investing.com - The dollar strengthened against the world's major currencies on Friday, firming on news that the U.S. economy added a net 200,000 jobs in December, above expectations.

The greenback on Friday was up against the euro, with EUR/USD dropping 0.535% to hit 1.2721.

The Bureau of Labor Statistics jobs report sparked demand for dollars as the data hit the wire at a time when European debt woes were rising anew.

German factory orders slipped 4.8% in November, coming in worse than analyst expectations for a 1.6% decline.
 
Weak economic activity in Europe's largest economy came in at about the same time as banks moved to deposit more and more money in the European Central Bank's overnight deposit accounts instead of lending it out, which fueled further fears that the European economy is in for some rough seas.

Meanwhile, the dollar firmed against the pound, with Cable falling 0.48% to hit 1.5420.

The greenback was down 0.13% against the yen, with USD/JPY was trading at 77.03, and up against the Swiss franc, with USD/CHF climbing 0.30% at 0.9554.

The greenback was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD rising 0.65% at 1.0365, AUD/USD down 0.29% to 1.0232 and NZD/USD up 0.08% at 0.7813.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.36% at 81.59.

On Monday, all eyes will focus on China, which will tentatively release its latest economic growth, inflation and trade balance figures.

Also on Monday, U.S. consumer credit figures will come out, while in Europe traders will keep an eye on Swiss unemployment rates and French consumer spending figures.

The U.K., meanwhile, will release manufacturing and industrial output figures while in Canada, housing starts and building permits will be released.





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