USD Gains After Slightly Positive Jobs Data
April 02, 2010 9:36 AM
The USD rose upon issue of the US Non-Farm Payroll figures. The release of the employment report showed that the US economy created 162,000 jobs in March, the highest since the beginning of the recession. This was slightly lower than expectations of 190,000. February numbers were revised to reflect a loss of 14,000 rather than a loss of 36,000. The unemployment rate is steady at 9.7%.
The dollar is rising against European currencies after the report. EUR/USD broke below 1.3540 and fell to 1.3515, so far, reaching a new intra-day low. The downside is gaining momentum as the dollar gains strength across the board. EUR/USD trades at daily lows and immediate support levels are at 1.3500/05 and 1.3470/75.
It may take a break of $1.35 in the euro to indicate its upside correction is over. Sterling has slipped and seems to be headed to $1.5180-$1.5200. The dollar has been bid to new highs against the yen.
Although the markets are thin on Friday, the jobs data reflects continued improvement in the US labor market which should lend strength to the dollar in coming sessions.
