3 May 2014
Session Recap: Dollar falls despite good NFP
FXStreet (Córdoba) - The US dollar finished Friday mostly in negative territory despite a better-than-expected US employment report. Greenback initially turned to the upside but then reversed and erased all gain, ending the week under pressure.
European currencies finished the week near the highs. The EUR/USD closed around 1.3870 after bouncing from 1.3810 while the GBP/USD ended hovering around 1.6875, slightly lower on Friday but with the fourth weekly gain in a row and the highest close since October 2008. The Swiss Franc was the best performer of the group, after the USD/CHF retreated sharply from 0.8840 to 0.8775.
The Yen managed to trim losses Friday , boosted by a strong reversal in the USD/JPY, that after hitting 103.00 (during the minute that followed the release of the Nonfarm Payrolls report), turned to the downside and tumbled to 102.12. Long term US government bond yields fell on Friday despite improving economic data from the labor market, favoring the Japanese currency.
Commodity currencies tumbled against Greenback on US labor market numbers but then resumed the upside, particularly the New Zealand dollar. The NZD/USD rebounded at 0.8590, jumped to 0.8670 and ended the week near the highs and with a 80-pip gain. The Canadian dollar lagged on Friday but the worst during the week was the Australian dollar.
The main event economic event of the day was the release of the US employment report. According to the Labor Department the economy added 288,000 jobs in April, above expectations of 210,000. The unemployment rate fell from 6.7% to 6.3%. It was a report that showed strength in the labor market. But on the negative side, the labor force participation fell to 35 year low. The other economic report was factory orders from March that rose 1.1%, below the 1.4% expected. Despite the upbeat employment report, the US dollar finished the week lower across the board.
Gold had a volatile session on Friday and jumped from $1,277 to $1,305 and finished the week around $1,300 little changed, after being able to erase previous losses, amid tensions in Ukraine. Crude oil rose on Friday and finished barely below $100; but lost 0.8% during the week.
Main headlines in the American session
Wall Street closes Friday with losses but positive on the week
Looking further ahead; QE unlikely form ECB - BAML
GBP/USD resting into the close
Gold jumps to $1,304
EUR/USD bounces sharply and retests daily highs
US: Nonfarm payrolls soar to 288K in April, beating expectations
European currencies finished the week near the highs. The EUR/USD closed around 1.3870 after bouncing from 1.3810 while the GBP/USD ended hovering around 1.6875, slightly lower on Friday but with the fourth weekly gain in a row and the highest close since October 2008. The Swiss Franc was the best performer of the group, after the USD/CHF retreated sharply from 0.8840 to 0.8775.
The Yen managed to trim losses Friday , boosted by a strong reversal in the USD/JPY, that after hitting 103.00 (during the minute that followed the release of the Nonfarm Payrolls report), turned to the downside and tumbled to 102.12. Long term US government bond yields fell on Friday despite improving economic data from the labor market, favoring the Japanese currency.
Commodity currencies tumbled against Greenback on US labor market numbers but then resumed the upside, particularly the New Zealand dollar. The NZD/USD rebounded at 0.8590, jumped to 0.8670 and ended the week near the highs and with a 80-pip gain. The Canadian dollar lagged on Friday but the worst during the week was the Australian dollar.
The main event economic event of the day was the release of the US employment report. According to the Labor Department the economy added 288,000 jobs in April, above expectations of 210,000. The unemployment rate fell from 6.7% to 6.3%. It was a report that showed strength in the labor market. But on the negative side, the labor force participation fell to 35 year low. The other economic report was factory orders from March that rose 1.1%, below the 1.4% expected. Despite the upbeat employment report, the US dollar finished the week lower across the board.
Gold had a volatile session on Friday and jumped from $1,277 to $1,305 and finished the week around $1,300 little changed, after being able to erase previous losses, amid tensions in Ukraine. Crude oil rose on Friday and finished barely below $100; but lost 0.8% during the week.
Main headlines in the American session
Wall Street closes Friday with losses but positive on the week
Looking further ahead; QE unlikely form ECB - BAML
GBP/USD resting into the close
Gold jumps to $1,304
EUR/USD bounces sharply and retests daily highs
US: Nonfarm payrolls soar to 288K in April, beating expectations