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Ukraine unease wipes out dollar's gains from upbeat U.S. jobs report

Published 05/02/2014, 03:36 PM
Updated 05/02/2014, 03:40 PM
Dollar shoots up on U.S. jobs report, shoots back down on Ukraine unease
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Investing.com - A robust U.S. April jobs report sent the dollar gaining though fears the Ukraine crisis is set to heat up wiped out the greenback's advance later in the session, leaving the greenback largely lower against most major currencies on Friday.

In U.S. trading on Friday, EUR/USD was up 0.04% at 1.3873.

Geopolitical concerns eclipsed robust U.S. jobs numbers and took the steam out of the dollar's earlier advance.

The U.N. Security Council met to discuss the Ukraine crisis on Friday, while separately, U.S. President Barack Obama earlier threatened to slap fresh sanctions on Russia if Moscow disrupts Ukrainian elections scheduled for May 25.

Ukraine's army and a pro-Russian rebels continued to skirmish, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff, which could weaken the dollar.

Elsewhere, the Labor Department reported earlier that the U.S. economy added 288,000 jobs in April, beating expectations for a 210,000 increase. March's figure was revised up to a 203,000 rise from a previously estimated 192,000 gain.

The private sector added 273,000 last month, more than an expected 210,000 increase. In March, the number of private sector jobs was revised up to a 202,000 increase a previously estimated 192,000 rise.

The report also showed that the U.S. unemployment rate fell to 6.3% in April, from 6.7% the previous month, compared to expectations for a fall 6.6%.

Separately, data showed that U.S. factory orders rose 1.1% in March, less than the expected 1.4% gain, after a 1.5% rise in February, whose figure was revised down from a previously estimated 1.6% increase.

The data cemented expectations that the Federal Reserve remains on course to dismantle stimulus programs that have weakened the dollar to spur recovery since 2012.

In the euro zone, data showed that the unemployment rate remained unchanged at 11.8% in March, confounding expectations for a rise to 11.9%. March's figure was revised down from a previously estimated rate of 11.9%.

Separately, Markit said Germany's manufacturing purchasing managers' index slipped to 54.1 last month, from a reading of 54.2 in March. Analysts had expected the index to remain unchanged in April.

In Italy however, the manufacturing PMI rose to a 35-month high of 54.0 last month, from a reading of 52.4 in March, while Spain's manufacturing PMI ticked down to 52.7 in April, from a reading of 52.8 the previous month.

The final euro zone manufacturing PMI ticked up to 53.4 in April, from 53.3 in March. Analysts had expected the index to remain unchanged last month.

The dollar was down against the yen, with USD/JPY down 0.11% at 102.22 and down against the Swiss franc, with USD/CHF down 0.14% at 0.8781.

The greenback was up against the pound, with GBP/USD down 0.13% at 1.6871.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.18% at 1.0981, AUD/USD down 0.06% at 0.9267 and NZD/USD up 0.34% at 0.8662.

The US dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.01% at 79.57.

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