EUR/USD
The euro edged up against the dollar yesterday as investors avoided the greenback on fears an escalating crisis in Ukraine may drag the Washington into the conflict and dampen recovery, though upbeat data out of the U.S. service sector cushioned the dollar and stabilized it. In U.S. trading, the shared currency was up 0.10% at 1.3883, up from a session low of 1.3865 and off a high of 1.3886. Investors were paying close attention to events unfolding in Ukraine, after conflict between the government and pro-Russian separatists grew more widespread over the weekend, which weakened the dollar. Elsewhere, profit taking from Friday's upbeat jobs report softened the greenback as well. The dollar firmed last week after the Labor Department reported that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000, while the unemployment rate dropped to a five-and-a-half year low of 6.3%. Still, concerns that long-term unemployment will remain a problem for the U.S. economy tarnished the otherwise positive jobs report, as the headline jobless rate fell in part due to a drop in the labor force, a sign that many who have been out of work for a long time quit looking for jobs and thus are no longer considered part of the labor pool. Supporting the U.S. currency, however, was an upbeat report on the U.S. service sector. In a report, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to a five-month high of 55.2 in April, from a reading of 53.1 in March, compared to expectations for a rise to 54.1.
GBP/USD
The pound remained moderately lower against the U.S. dollar in thin trade on Monday, as trade volumes remained limited with U.K. markets closed for a national holiday, and as strong U.S. service sector data did little to support the greenback. Sterling hit 1.6876 during Asian session to stay at 1.6872 as average trading rate. In a report, the Institute of Supply Management said its non-manufacturing purchasing managers' index rose to a five-month high of 55.2 in April, from a reading of 53.1 in March, compared to expectations for a rise to 54.1. The data came after official data on Friday showed that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000, while the unemployment rate dropped to a five-and-a-half year low of 6.3%. But the dollar remained under pressure, as the report also showed that the labor force participation rate, which measures the proportion of people either working or looking for work, fell and wage growth weakened.
USD/JPY
The samurai currency rose against the greenback yesterday Monday after a Chinese factory gauge missed expectations and sparked safe-haven demand for the Japanese currency, while escalating unrest in Ukraine also watered down the greenback. Yen gained 0.11% to be traded at 102.08, up from a session low of 101.87 and off a high of 102.26. Today, yen recorded a high of 102.19 during the Asian session and was at 102.08 as low. Investors were paying attention for the unfolding situation in Ukraine, after conflict between the government and pro-Russian separatists grew more widespread over the weekend. Fears that the U.S. will get dragged deeper into conflict and stifle recovery softened the greenback. Elsewhere, weak output data out of China sparked safe-haven demand for the yen. A final reading of China’s HSBC manufacturing purchasing managers’ index came in at 48.1 April, down from a preliminary estimate of 48.3 and missing forecasts for an uptick to 48.4. A reading below 50 indicates a contraction. The dollar firmed last week after the Labor Department reported that the U.S. economy added 288K jobs in April, well above expectations for jobs growth of 210K, while the unemployment rate dropped to a five-and-a-half year low of 6.3%.
USD/CAD
The dollar traded lower though steadily against the Canadian dollar on Monday after weak manufacturing numbers out of China sent investors to the yen, while escalating tensions in Ukraine softened the greenback as well. Loonie rose down 0.17% at 1.0955, as investors’ fears about the Ukrainian issue, after conflict between the government and pro-Russian separatists grew more widespread and intensified over the weekend, which weakened the dollar on concerns Washington will get dragged deeper into the chaos and stifle recovery. The dollar gained last week as a report showed that the U.S. economy added 288K jobs in April, well above expectations for jobs growth of 210K, while the unemployment rate dropped to a five-and-a-half year low of 6.3%. Still, concerns that long-term unemployment will remain a problem for the U.S. economy tarnished the otherwise positive jobs report, as the headline jobless rate fell in part due to a drop in the labor force, a sign that many who have been out of work for a long time quit looking for jobs and thus are no longer considered part of the labor pool.
