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Forex - Dollar slips to fresh 6-month lows despite jobs data

Published 05/05/2017, 10:49 AM
Dollar edges lower, hits new multi-month trough even after strong U.S. data
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Investing.com - The dollar slipped to fresh six-month lows against other major currencies on Friday, despite the release of upbeat U.S. jobs data, as investors turned their attention to the French presidential election this weekend.

The U.S. Labor Department said the economy added 211,000 jobs in April, beating expectations for an increase of 185,000. In March, 79,000 jobs were created, down from a previously estimated gain of 98,000.

The unemployment rate ticked down to 4.4% last month from 4.5%, compared to expectations for a rise to 4.6%.

The report also showed that average hourly earnings rose 0.3% in April, in line with expectations.

EUR/USD was little changed at 1.0989, not far from a six-month peak of 1.0990 hit overnight.

The single currency had strengthened broadly after polls declared that Emmanuel Macron won a TV presidential debate against Marine Le Pen late Wednesday, increasing the likelihood of a Macron victory at the runoff vote on Sunday.

GBP/USD rose 0.29% to 1.2958, not far from the previous session’s one-week high of 1.2970.

USD/JPY added 0.14% to 112.62, while USD/CHF edged up 0.15% to 0.9879.

The Australian dollar was steady, with AUD/USD at 0.7407, while NZD/USD climbed 0.60% to trade at 0.6911.

The Reserve Bank of New Zealand earlier reported that inflation expectations ticked up to 2.2% in the second quarter from 1.9% in the three months to March.

Meanwhile, USD/CAD dropped 0.44% to 1.3690, pulling away from a fresh 15-month peak of 1.3794.

Statistics Canada said the number of employed people rose by 3,200 in April, disappointing expectations for an increase of 10,000 and after a 19,400 gain the previous month.

The unemployment rate ticked down to 6.5% last month from 6.7%, compared to expectations for an unchanged reading.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 98.52, the lowest since November 2016.

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