USD loses ground on low jobs data
Daily Currency Update
The US dollar lost ground Friday morning after the Non-Farm Payrolls for April came out shy of expectations. Non-Farm Payroll numbers showed the US economy added 175,000 jobs in April. This was shy of the expected for 243,000 added jobs. In addition, the unemployment rate rose to 3.9% from the 3.8% seen previously. This had markets eyeing possible rate cuts from the Federal Reserve again as a slowdown in jobs numbers could be a sign of slowing Gross Domestic Product (GDP) growth. This added to the relatively positive earning season on Wall Street this week which created a risk positive environment and pulled funds out of USD treasuries.Key Movers
The Euro was up against the USD this morning after benefitting from a turn up in market risk as the USD fell. Conditions in the trading zone held steady as unemployment data released this morning held at 6.5%, the same level as last month.The Canadian dollar extended the gains it saw yesterday as the market reacted to weaker US jobs and stock markets saw a risk positive turn. The Loonie has made gains the last 3 days after hitting lows last seen in November. With a lack of Canadian data this week, the currency has moved along with general market sentiment, so the jump in equities helped the generally risk positive currency. In oil news, oil recovered slightly from the drop yesterday. US inventories this week surprised to the upside, showing a possible drop in demand. Prices sat under $80 a barrel, down from $86 earlier in the week.
Expected Ranges
- EUR/USD: 1.0676 - 1.0803 ▲
- GBP/USD: 1.2475 - 1.2624 ▲
- AUD/USD: 0.64520 - 0.6638 ▲
- USD/CAD: 1.3615 - 1.3762 ▼