USD drops amid jobs data release and Fed Chairman remarks
Daily Currency Update
The US Dollar Index (DXY) headed into the last trading session of the week down as the US economy added more jobs and equities markets extended the week’s rally. February’s Non-Farm Payroll data released today showed the US economy added 275,000 positions, better than the expected 200,000. This paired with early indications of North American stock markets heading into positive territory had futures markets all trading up. Adding to the USD dip was Chairman of the US Federal Reserve, Jerome Powell indicating a willingness to cut rates earlier than expected during a Senate testimony yesterday.Key Movers
The Euro gained against the greenback as the European economy reversed negative Gross Domestic Product (GDP) growth. The GDP data for the Eurozone released this morning showed 0.1% growth year-over-year, better than the -0.1% seen previously.The GBP/USD reached an 8-month high this morning to trade near 1.28749. With the UK jobs report set to be released next week and the Bank of England (BoE) meeting the following week, markets could see some downward pressure on the pound going forward.
The CAD was up again against the USD as job numbers in Canada surprised to the upside. Data released this morning showed that the economy added 40,700 positions last month, more than double the 20,000 that was expected. All gains came from full-time positions, which were up 70,600, with a 29,900 drop in part-time roles. This, combined with the USD struggling with stronger equities, helped the Loonie as it headed into the last session of the week. Oil held onto the $78 range markets saw yesterday as concerns over demand for the commodity in China waivered. Chinese growth plans, released earlier this week, have failed to convince markets that demand for commodities will rise significantly.
Expected Ranges
- EUR/USD: 1.0896 - 1.0975 ▲
- GBP/USD: 1.2752 - 1.2884 ▲
- AUD/USD: 0.6605 - 0.6718 ▲
- USD/CAD: 1.3428 - 1.3537 ▼