US Jobs data weaker than expected, dollar softer

US Jobs data weaker than expected, dollar softer

The dollar gave up 0.4% following January employment data which saw non-farm payrolls missing expectations. However, risk-on sentiment surrounding stimulus progress, vaccine deployment and strong earnings boosted equities. G-10 peers gained on a softer dollar ahead of the weekend.

“The need for change bulldozed a road down the center of my mind.”

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  • FX Rates
    February 5, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The US dollar fell following weaker than expected non-farm payrolls for January and unemployment printing 6.3% versus an expected 6.7%. In an early morning vote, the Senate voted along party lines to back a $1.9 trillion package. The resolution will now go back to the House, where the Democratic majority does not require Republican support.

    GBP

    The pound rose slightly on the softer dollar consolidating in the center of the one-month band. As Covid-19 deaths in the UK top 110k, former health secretary Jeremy Hunt has warned that restrictions shouldn’t be lifted until cases are below 1,000 a day - despite hopes that cases have hit their peak.

    EUR

    After dipping below 1.20 yesterday, the euro regained lost ground and rose for the first time this week. The pair remains healthily above the 200-DMA.

    CAD

    The Canadian currency gained a little ground versus the softer greenback as both countries reported employment data and oil prices rose to 1-year highs. Canada data showed 212K jobs lost in January – the largest monthly decline since April. Unemployment rate rose to 9.4%, missing expectations of 8.9%.

    ASIA/PACIFIC

    A softer dollar loses some ground versus the Japanese yen, but the pair remains above the 200-DMA for the first time since June.

    The yuan sits lower versus the dollar on positioning ahead of the Lunar New Year.

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Kathryn Garvey
WRITTEN BY
Kathryn Garvey

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