Dollar Mixed After U.S. Jobs Data
July 07 2017 - 4:20AM
RTTF2
The greenback was trading mixed against its major counterparts
in the European session on Friday, after a data showed
stronger-than-expected U.S. jobs growth in June, although the
unemployment rate ticked up.
Data from the Labor Department showed that U.S. employment
increased much more than expected in the month of June.
The report said non-farm payroll employment jumped by 222,000
jobs in June following an upwardly revised increase of 152,000 jobs
in May.
Economists had expected employment to climb by 179,000 jobs
compared to the addition of 138,000 jobs originally reported for
the previous month.
Despite the stronger than expected job growth, the unemployment
rate inched up to 4.4 percent in June from 4.3 percent in May.
Economists had expected the unemployment rate to hold steady.
The G20 economic summit got underway in Germany, with issues on
terrorism, global trade and climate change to be high on the
agenda. German Chancellor Angela Merkel, who is hosting the summit,
said she expects to find "compromises and answers" on contentious
subjects on the agenda as world leaders met amid protests to
disrupt the summit.
The greenback rose against its major opponents in the Asian
session, with the exception of the franc.
The greenback retreated to 0.9607 Swiss franc, from a high of
0.9644 hit in the immediate aftermath of the data. The greenback is
likely to target support around the 0.93 region.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's unemployment rate remained stable in June.
The jobless rate held steady at seasonally adjusted 3.2 percent
in June, in line with expectations.
The greenback spiked up to a 9-day high of 1.2878 against the
pound, compared to yesterday's closing value of 1.2970. Next likely
resistance for the greenback is seen around the 1.27 level.
Data from the Office for National Statistics showed that UK
industrial production fell unexpectedly in May.
Industrial output fell 0.1 percent month-on-month in May,
confounding expectations for an increase of 0.4 percent and
reversed a 0.2 percent rise registered in April.
The greenback resumed its early advance against its Japanese
counterpart, touching a near a 2-month high of 113.86. The
greenback is seen finding resistance around the 115.00 mark. The
pair ended Thursday's trading at 113.21.
Preliminary data from the Cabinet Office showed that Japan's
leading index strengthened in May, while coincident index fell from
April.
The leading index that measures the future economic activity,
rose to 104.7 in May from 104.2 in April. The score was forecast to
rise to 104.6.
The greenback fell to a weekly low of 1.1440 against the euro,
following a brief rise to 1.1384 soon after the data. Continuation
of the greenback's downtrend may see it challenging support around
the 1.16 area.
Data from Destatis showed that German industrial production grew
at the fastest pace in four months in May.
Industrial production grew 1.2 percent month-on-month in May,
faster than the 0.4 percent increase seen in April and exceeded
economists' forecast of 0.2 percent.
Looking ahead, Canada Ivey PMI for May is due shortly.
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