The dollar weakened against the euro and other currencies after a dismal US jobs report on Friday, disappointing markets which had expected a higher number than the 88,000 jobs created in March. Expectations were for at least 190,000. Meanwhile, February’s numbers were revised up to a 268,000 gain, that was higher than the first estimated figure of 236,000.
The euro rose above the key $1.3000 level immediately after the data and then extended higher in the late US session to peak at $1.3038, up from pre-data levels of $ 1.2951.
Meanwhile, adding to the bullish sentiment on the single currency was Thursday’s European Central Bank policy meeting when rates were left unchanged. ECB Chief Mario Draghi remains committed in saving the monetary union.
Sterling jumped to a six-week high against the broadly weaker dollar, hitting a high of $1.5362, up from pre-data levels of $1.5239.
Gold prices also shot up due to the weaker dollar. The two assets usually have an inverse price relationship. The precious metal reached a high price of $1,580.84 in the late New York trade.
Dollar however gained against the yen. USDJPY initial knee-jerk reaction was to plunge to 95.75 yen after the data from 96.27 just before the data. But the pair subsequently recovered and moved back up 97.78 yen.
The Japanese currency is being weighed down as a result of aggressive Bank of Japan monetary policy. The central bank announced on Thursday that it will increase asset purchases to increase the monetary base and fight deflation to stimulate the economy.
The dollar weakened against the euro and other currencies after a dismal US jobs report on Friday, disappointing markets which had expected a higher number than the 88,000 jobs created in March. Expectations were for at least 190,000. Meanwhile, February’s numbers were revised up to a 268,000 gain, that was higher than the first estimated figure of 236,000.
The euro rose above the key $1.3000 level immediately after the data and then extended higher in the late US session to peak at $1.3038, up from pre-data levels of $ 1.2951.
Meanwhile, adding to the bullish sentiment on the single currency was Thursday’s European Central Bank policy meeting when rates were left unchanged. ECB Chief Mario Draghi remains committed in saving the monetary union.
Sterling jumped to a six-week high against the broadly weaker dollar, hitting a high of $1.5362, up from pre-data levels of $1.5239.
Gold prices also shot up due to the weaker dollar. The two assets usually have an inverse price relationship. The precious metal reached a high price of $1,580.84 in the late New York trade.
Dollar however gained against the yen. USDJPY initial knee-jerk reaction was to plunge to 95.75 yen after the data from 96.27 just before the data. But the pair subsequently recovered and moved back up 97.78 yen.
The Japanese currency is being weighed down as a result of aggressive Bank of Japan monetary policy. The central bank announced on Thursday that it will increase asset purchases to increase the monetary base and fight deflation to stimulate the economy.
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