empty
 
 

2021.03.0514:57:00UTC+00Dollar Extends Advance After Robust U.S. Jobs Data

The U.S. dollar extended gains against its key counterparts in the European session on Friday, after a report showed that the nation's job growth accelerated more than expected in February, driven by reopening of businesses following a drop in new coronavirus infections and the rollout of the vaccines.

Data from the Labor Department showed much stronger than expected U.S. job growth in February amid a significant rebound in employment in the leisure and hospitality industry.

The non-farm payroll employment jumped by 379,000 jobs in February after climbing by an upwardly revised 166,000 jobs in January.

Economists had expected employment to increase by 182,000 jobs compared to the uptick of 49,000 jobs originally reported for the previous month.

The unemployment rate unexpectedly edged down to 6.2 percent in February from 6.3 percent in January. Economists had expected the unemployment rate to remain unchanged.

Data from the Commerce Department showed that the U.S. trade deficit widened in the month of January.

The Commerce Department said the trade deficit widened to $68.2 billion in January from a revised $67.0 billion in December.

Fed Chair Jerome Powell on Thursday reiterated a commitment to maintain ultra-easy monetary policy until the economy is too far from recovery.

The Fed Chief said that the recent sell-off in Treasuries was not "disorderly" or likely to drive long-term rates far higher.

There will be "some upward pressure on prices" due to improving economic conditions, Powell said. But he acknowledged that the rise would be temporary and would not be sufficient for the central bank to change ultra-loose policies aimed to support the economy.

The dollar has been trading in a positive territory during today's trading session, amid a spike in the U.S. Treasury yields as Powell's comments failed to calm worries about higher borrowing costs.

The USD/JPY pair gained 0.6 percent to 108.64, its biggest level since June 2020. The pair had closed Thursday's deals at 107.97. The greenback is seen finding resistance around the 110.00 area.

The greenback added 0.6 percent to hit more than a 3-month high of 1.1893 against the euro. The pair was worth 1.1964 when it closed deals on Thursday. The greenback may face resistance around the 1.16 region, if it gains again.

Data from Destatis showed that Germany's factory orders growth exceeded expectations in January underpinned by robust foreign demand.

Factory orders expanded 1.4 percent month-on-month in January, reversing a revised 2.2 percent fall in the previous month. Orders were forecast to climb 0.7 percent.

The greenback was up by 0.8 percent against the pound, at a 3-week high of 1.3778. The GBP/USD pair had ended yesterday's trading session at 1.3893. Immediate resistance for the dollar is likely seen around the 1.34 level.

Data from the Lloyds Bank subsidiary Halifax and IHS Markit showed that U.K. house prices dropped for the second straight month in February.

House prices fell 0.1 percent on month, but slower than the 0.4 percent decline seen in January. This was the second consecutive fall and confounded expectations for an increase of 0.3 percent.

The greenback climbed to a 4-week high of 0.7621 against the aussie and a 4-day high of 1.2737 against the loonie, up from Thursday's closing quotes of 0.7721 and 1.2666, respectively. Further rally in the currency may challenge resistance around 0.75 against the aussie and 1.29 against the loonie.

The greenback reached as high as 0.7099 against the kiwi, setting a 1-1/2-month high. The pair was valued at 0.7188 at Thursday's close. Extension of the greenback's upward trading is likely to lead it to a resistance around the 0.68 level.

The greenback wobbled against the franc, with the pair trading at 0.9289. This followed a 7-1/2-month peak of 0.9311 set at 3:15 am ET. At yesterday's trading close, the pair was quoted at 0.9286.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback