Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dollar extends gains with focus on nonfarm payrolls

Published 05/05/2016, 10:51 AM
Updated 05/05/2016, 10:51 AM
© Reuters.  Dollar pushes higher vs. other majors, eyes on U.S. jobs data

© Reuters. Dollar pushes higher vs. other majors, eyes on U.S. jobs data

Investing.com - The dollar extended gains against the other major currencies on Thursday, despite the release of disappointing U.S. jobless claims data as investors turned their attention to Friday’s key employment report.

USD/JPY rose 0.22% to 107.26.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 29 increased by 17,000 to 274,000 from the previous week’s total of 257,000.

Analysts had expected jobless claims to rise by 3,000 to 260,000 last week.

Market participants were looking to Friday’s U.S. nonfarm payrolls data after payroll processing firm ADP said on Wednesday that non-farm private employment rose by 156,000 last month, missing expectations for an increase of 196,000.

Meanwhile, the yen weakened after Japan Prime Minister Shinzo Abe said on Thursday that tje government is prepared to take action against excessive, speculative rises in the nations’ currency.

EUR/USD dropped 0.72% to 1.1403.

The dollar was steady against the pound, with GBP/USD at 1.4485 and was higher against the Swiss franc, with USD/CHF gaining 0.98% to 0.9670.

Research group Markit reported on Thursday that its U.K. services purchasing managers’ index fell to 52.3 in April from 53.7 the previous month.

It was the lowest level since February 2013 and was below economists’ expectations for a reading of 53.5.

The report came after similar surveys of the manufacturing and construction sectors earlier in the week pointed to slowing growth at the start of the second quarter.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.31% at 0.7479 and with NZD/USD rising 0.23% to 0.6898.

Earlier Thursday, the Australian Bureau of Statistics said retail sales rose by 0.4% in March, beating expectations for a 0.3% gain, after an uptick of 0.1% in February.

Data also showed that Australia’s trade deficit narrowed to A$2.163 billion in March from A$3.044 billion in February. Analysts had expected the trade deficit to narrow to A$2.900 billion un March.

In other news, Australia Treasurer Scott Morrison said in a statement on Thursday that Philip Lowe will be replacing Glenn Stevens as governor of the Reserve Bank of Australia for a seven-year term on September 18.

Elsewhere, USD/CAD fell 0.28% to 1.2837 as rallying oil prices lent support the commodity-related loonie.

Statistics Canada said earlier that building permits dropped by 7.0% in March, compared to expectations for a 5.0% decline.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.49% at 93.73, the highest since April 28.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.