Forex - Dollar drops as U.S. adds more jobs than expected in April

ForexMay 03, 2013 03:42PM ET - The U.S. dollar weakened against most major currencies on Friday after the Department of Labor reported that the economy picked up more jobs than expected in April and upwardly revised previous months' figures.

In U.S. trading on Friday, EUR/USD was up 0.35% at 1.3111.

The Bureau of Labor Statistics reported earlier that the U.S. economy added 165,000 nonfarm payrolls in April, up from 138,000 in March, whose figure was revised up from 88,000.

April's figures far outpaced analysts' forecasts for a 145,000 figure, while February's figures were revised to 332,000 from 268,000.

The headline unemployment rate ticked down to 7.5% in April from 7.6% in March.

The numbers fueled demand for risk-on asset classes such as stocks, which enticed investors out of the safety of the dollar.

Elsewhere, the Institute for Supply Management reported that its April non-manufacturing index fell to 53.1 in April from 54.4 in March, missing market calls for a 54.0 reading, the slowest pace of expansion since July of last year.

Still, a reading over 50 indicates expansion.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.20% at 1.5564.

The dollar was up against the yen, with USD/JPY up 1.13% at 99.06, and up against the Swiss franc, with USD/CHF trading up 0.08% at 0.9356.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.27% at 1.0078, AUD/USD up 0.69% at 1.0320 and NZD/USD trading up 0.58% at 0.8544.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% at 82.17.

Forex - Dollar drops as U.S. adds more jobs than expected in April

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Charles Nesbit
Charles Nesbit May 05, 2013 6:33AM GMT
It seems the FX speculators can do nothing with a strengthening US economy. There's no money to be made. They need to push all currencies, especially the EUR and GBP UP & UP against the USD. Why? Simple - because the higher they artificially push them, the more money they'll make when they crash. And crash they will !
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