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Forex - Dollar little changed after mixed U.S. employment data

Published 04/07/2017, 08:42 AM
Dollar holds steady after nonfarm payrolls report
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Investing.com - The dollar was little changed against other major currencies on Friday, after the release of mixed U.S. employment data, while investors remained cautious following a U.S. missile strike in Syria.

EUR/USD was little changed at 1.0647, off a three-and-a-hald week low of 1.0623 hit earlier in the day.

The U.S. Labor Department said the economy added 98,000 jobs in March, disappointing expectations for a rise of 180,000. The economy created 219,000 jobs in February, whose figure was revised from a previously estimated increase of 235,000.

The U.S. unemployment rate fell to 4.5% last month from 4.7% in February, confounding expectations for an unchanged reading.

The report also showed that average hourly earnings rose 0.2% in March, in line with expectations.

Meanwhile, sentiment on the greenback remained vulnerable after the U.S. launched cruise missiles at an airbase in Syria, sparking concerns of an escalation in the Syrian civil war.

U.S. President Donald Trump said on Thursday he ordered missile strikes against a Syrian airfield from which a deadly chemical weapons attack was launched.

The air strike came during a two-day summit between Trump and Chinese President Xi Jinping which, on Thursday, had a strong focus on trade and North Korea's military program.

Trump had warned that he would be ready to act unilaterally to address North Korea's nuclear program if China does not step up to help in the matter.

Elsewhere, GBP/USD fell 0.19% to 1.2445 after the U.K. Office for National Statistics said manufacturing production fell 0.1% in February, compared to expectations for a gain of 0.2% and following a decline of 1.0% in the previous month.

On an annualized basis, manufacturing production increased by 3.3% in February, below forecasts for a 3.9% advance.

The report also showed that industrial production fell 0.7% in February, compared to forecasts for a 0.2% increase.

USD/JPY declined 0.42% to 110.37, while USD/CHF held steady at 1.0044.

The Australian dollar was weaker, with AUD/USD down 0.20% at 0.7529, while NZD/USD rose 0.23% to 0.6986.

Meanwhile, USD/CAD slid 0.37% to 1.3362.

Statistics Canada reported on Friday that the number of employed people increased by 19,400 in March, beating expectations for a 5,000 gain and after a 15,300 rise the previous month.

The unemployment rate ticked up to 6.7% last month from 6.6% in February, in line with expectations.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 100.56, still close to Wednesday’s three-week high of 100.99.

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