The U.S. dollar rebounded from its early lows against the other major currencies in early New York on Friday, as the U.S. economy added more jobs than expected in March.
Data from the Labor Department showed that U.S. non-farm payroll employment climbed by 215,000 jobs in March after jumping by an upwardly revised 245,000 in February.
Economists had expected an increase of about 210,000 jobs compared to the addition of 242,000 jobs originally reported for the previous month.
Nonetheless, the Labor Department also said the unemployment rate inched up to 5.0 percent in March from 4.9 percent in February. The unemployment rate had been expected to remain unchanged.
The currency’s gained were limited as dovish commentary from the Federal Reserve Chair Janet Yellen this week trimmed expectations for higher rate hikes this year.
Investors now focus on another batch of U.S. data on manufacturing activity, consumer sentiment and construction spending for further clues about the economy.
The greenback slipped against most major rivals in European trading.
The greenback advanced to a 3-day high of 1.4237 against the pound, compared to Thursday’s closing value of 1.4359. The greenback is likely to challenge resistance around the 1.40 zone.
Survey figures from Markit Economic showed that British manufacturing growth improved less-than-expected in March, though slightly.
The Markit/Chartered Institute of Procurement & Supply Purchasing Managers’ Index for manufacturing rose to 51.0 in March from February’s 34-month low of 50.8. Economists had expected the index to climb to 51.2.
The greenback, having fallen to a 5-1/2-month low of 1.1438 against the euro at 8:15 am ET, reversed direction with the pair trading at 1.1373. The pair ended yesterday’s trading at 1.1376.
Final data from Markit showed that Eurozone manufacturing growth improved more than initially estimated in March.
The factory Purchasing Managers’ Index rose to 51.6 in March from 51.2 in February and above the flash score of 51.4.
The greenback that weakened to more than a 5-month low of 0.9554 against the Swiss franc recovered to 0.9606. The next possible resistance for the greenback-franc pair is seen around the 0.98 region.
Figures from the Federal Statistical Office showed that Swiss retail sales declined for a seventh consecutive month in February.
Retail sales dropped an unadjusted 0.2 percent annually after a 0.1 percent drop in January. Sales have been declining since August last year. A 0.2 percent growth was initially reported for January.
The greenback climbed to a 2-day high of 0.6847 against the kiwi, 3-day highs of 0.7613 against the aussie and 1.3134 against the loonie, reversing from its early lows of 0.6937, 0.7700 and 1.2968, respectively. If the greenback climbs further, it may find resistance around 0.67 against the kiwi, 0.75 against the aussie and 1.32 against the loonie.
The greenback declined to a 10-day low of 111.82 against the Japanese yen, from a high of 112.58 hit at 5:15 pm ET. Continuation of the greenback’s downtrend may lead it to a support around the 110.00 level.
Survey data from Markit Economics showed that Japan’s manufacturing activity deteriorated for the first time in eleven months in March, as output and new orders fell at sharper rates.
The Markit/ Nikkei Manufacturing Purchasing Managers’ Index, or PMI, fell to 49.1 in March, in line with the preliminary data, from 50.1 in February.
At 12:00 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is expected to speak about the economic outlook and monetary policy at the New York Association for Business Economics, in New York.
The material has been provided by InstaForex Company – www.instaforex.com