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Forex - Dollar moves higher as markets digest NFP report

Published 04/07/2017, 10:50 AM
© Reuters.  Dollar gains ground vs. rivals after mixed U.S. jobs report
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Investing.com - The dollar moved higher against other major currencies on Friday, as markets digested the release of mixed U.S. employment data, as well as a U.S. missile strike in Syria.

EUR/USD fell 0.24% to 1.0617, the lowest since March 15.

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 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.

Elsewhere, GBP/USD dropped 0.55% to 1.2401 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 was little changed at 110.79, while USD/CHF edged up 0.16% to 1.0067.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.37% at 0.7517 and with NZD/USD easing 0.09% to 0.6962.

Meanwhile, USD/CAD edged down 0.16% to trade at 1.3394.

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 up 0.21% at 100.82, close to Wednesday’s three-week high of 100.99.

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