Investing.com - The dollar gained against the euro on Friday after the latest U.S. employment report showed that job creation rebounded in April, but a sharp downward revision to the previous month’s figure checked gains against the other major currencies.
The Labor Department reported that the U.S. economy added 223,000 jobs in April, just shy of economists forecast for 224,000. The unemployment rate ticked down from 5.5% to 5.4%, the lowest since May 2008.
But March’s payrolls report was revised to show that only 85,000 jobs were created, the fewest since June 2012.
The data did little to alter expectations that the Federal Reserve will keep rates on hold at current record lows until later in the year.
EUR/USD touched session lows of 1.1180 immediately following the report and ended at 1.1200, off 0.58% for the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, hit highs of 95.17 after the data, before pulling back to 94.9 in late trade. The index ended the week down 0.57%, its fourth consecutive weekly loss.
The dollar was flat against the yen in late trade, with USD/JPY at 119.77. USD/CHF surged 0.87% to 0.9297.
The pound rallied to 10-week highs against the dollar jumped against the euro after Prime Minister David Cameron’s Conservative Party recorded a solid victory in in Britain.
GBP/USD was up 1.39% to 1.5456 in late trade, while EUR/GBP dropped 1.85% to 0.7251.
Elsewhere, the Canadian dollar ended higher against the greenback after a weaker-than-expected domestic jobs report.
Statistics Canada reported that the economy shed 19,700 jobs in April, far more than the decline of 5,000 forecast by economists. The unemployment rate remained steady at 6.8%.
USD/CAD initially hit highs of 1.2146 in choppy trade, before slipping back to 1.2070 late Friday, down 0.45% for the day.
In the week ahead investors will be turning their attention to U.S. data on retail sales and consumer sentiment for fresh indications on the strength of the economic recovery. The euro zone is to release what will be closely watched preliminary estimates on first quarter growth and the latest U.K. jobs report will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, May 11
Australia is to release private sector data on business confidence.
The Bank of England is to announce its monetary policy decision.
Tuesday, May 12
Australia is to publish data on home loans.
The U.K. is to release a report on industrial and manufacturing production.
In the euro zone, the Economic and Financial Affairs Council is to hold talks in Brussels.
Wednesday, May 13
The Reserve Bank of New Zealand is to publish its financial stability report and Governor Graeme Wheeler is to hold a press conference.
Japan is to report on the current account.
China is to release a string of data, including reports on industrial production, fixed asset investment and retail sales.
The euro zone is to publish what will be closely watched data on first quarter economic growth. Later in the day, the European Central Bank is to publish the minutes of its latest meeting.
The U.K. is to release the latest employment report, which is to be followed by the BoE’s quarterly inflation report.
The U.S. is to publish data on retail sales.
Thursday, May 14
New Zealand is to release private sector data on manufacturing activity and official data on retail sales.
The U.S. is to publish reports on producer prices and initial jobless claims.
Friday, May 15
Switzerland is to release data on producer prices.
Canada is to publish a report on manufacturing sales.
The U.S. is to round up the week with reports on industrial production, manufacturing activity in the New York region and consumer sentiment.