After employment data revealed that the US generated more jobs than expected in June, the dollar wiped off losses and inched higher against other major currencies on Friday. The upbeat job data added to the optimism over the strength of the labor market.
The US Department of Labor stated the economy added 287,000 jobs in June, compared to the 175,000 expectated jobs. The number of jobs generated rose by 11,000 in May, whose number was revised from a formerly estimated gain of 38,000.
It was also reported that the unemployment rate ticked up to 4.9% the prior month from 4.7% in May, compared to predicated growth of 4.8%. Meanwhile, average hourly earnings climbed 0.1% in June, beating the expected 0.2% advance and after a 0.2% gain in May.
The report came after Thursday’s findings unveiled that the number of people filing for initial jobless benefits in the week ending July 2 dropped as expected, while payroll processing company ADP stated non-farm private employment advanced, beating the expectation last June.
Elsewhere, the Australian and New Zealand dollars were stronger: AUD/USD jumped 0.32% at 0.7507 and NZD/USD added 0.41% to 0.72593.
USD/CAD rallied 0.30% to 1.3040 after data revealed that the number of employed people in Canada tumbled by 700 in June, defeating the expected rise of 5,000.
Canada’s unemployment rate dropped by 6.8% last month from 6.9% in May, confounding the estimated 7.0% growth.
The US dollar index was 0.25% higher at 96.58, the strongest since June 27, after the 96.08 low earlier in the session.
GBP/USD rallied 0.09% at 1.2917, lingering near to Wednesday’s 31-year trough.
In Britain, investors dismissed the report by the Office for National Statistics on Friday, showing that the country’s goods trade deficit expanded to £9.88 billion from £9.41 billion in April, which number was revised from an initial deficit of £10.53 billion.
Economists had estimated the goods trade deficit to come in at £10.65 billion in May.
However, the pound still remained under heavy pressure, as Brexit continued to bring fears over the vote’s repercussions on the UK’s economy.
Meanwhile, EUR/USD declined 0.40% to 1.1020, and EUR/GBP toppled 0.57% to trade at 0.8519, down Wednesday’s 35-month peak of 0.8628.
USD/JPY climbed 0.28% to 101.05, while USD/CHF rose 0.50% to 0.9828.
Market players were still speculating if the Bank of Japan plans to announce fresh easing measures soon to support the economy.
On Thursday, central bank Governor Haruhiko Kuroda stated that the BoJ was prepared to expand monetary stimulus further if needed to acquire its 2% inflation target and declared his confidence over Japan’s recovery outlooks, not dropping anything on the Brexit uproar.
Official data earlier Friday, revealed that Japan’s adjusted current account surplus narrowed to ¥1.41 trillion in May from ¥1.63 trillion in June. According to analysts, they had expected the current account surplus to narrow to ¥1.52 trillion in May.
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