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Forex - Dollar weakens as March jobs report in U.S. disappoints

By Investing.com  |  Forex  |  Apr 05, 2013 07:08PM GMT  |   Add a Comment
 
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Investing.com - The U.S. dollar weakened against most major currencies on Friday after the U.S. government revealed that the economy created a scant number of jobs in March.

Forex - Dollar weakens as March jobs report in U.S. disappoints
In U.S. trading on Friday, EUR/USD was up 0.55% at 1.3007.

The U.S. Bureau of Labor Statistics reported earlier the economy added 88,000 nonfarm payrolls in March, way below expectations for a gain of 200,000 and below the 268,000 jobs added in February.

The private sector added 95,000 jobs last month, after an increase of 254,000 in February, missing expectations for a 209,000 rise.

The report also showed that the U.S. unemployment rate ticked down to 7.6% in March, from 7.7% the previous month, as more Americans left the labor force.

Analysts were expecting the headline unemployment rate to remain unchanged last month.

The news sent the dollar falling on expectations for the Federal Reserve to keep monetary stimulus programs in place, including its USD85 billion monthly bond-buying program that weakens the greenback as a side effect.

Elsewhere in the U.S., the Commerce Department reported that the U.S. trade deficit narrowed unexpectedly in February, coming in at USD43 billion compared to a USD44.5 billion deficit the previous month.

Analysts were expecting the country's trade deficit to widen to USD44.6 billion in February.

Meanwhile in Europe, Eurostat, the statistical arm of the European Union, reported earlier that retail sales in the currency zone fell 0.3% in February, outpacing expectations for a 0.2% decline after a 0.9% rise the previous month, though the U.S. jobs report served as the greenback's chief steering current on Friday.

Eurostat also reported that the euro area's gross domestic product contracted by 0.6% in the fourth quarter, a revision that came in line with expectations.

The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.70% at 1.5338.

Data showed that house prices in the U.K. rose 0.2% in March, in line with expectations, after a 0.5% increase the previous month. which gave Cable further support.

The dollar was up against the yen, with USD/JPY trading up 1.38% at 97.66, and down against the Swiss franc, with USD/CHF trading down 0.69% at 0.9334.

The dollar was mixed against its counterparts in Canada, Australia and New Zealand, with USD/CAD up 0.45% at 1.0175, AUD/USD down 0.49% at 1.0383 and NZD/USD trading flat at 0.8424.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.24% at 82.64.








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