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.”
February 5, 2021
EUR/USD 1.2018 GBP/USD 1.3723 USD/CAD 1.2784 AUD/USD 0.7644 USD/JPY 105.51 USD/CNH 6.4658 USD/ILS 3.2898 USD/MXN 20.1909 USD/CHF 0.901 USD/INR 72.9288 USD/BRL 5.3646 USD/SGD 1.3355 USD/DKK 6.1875 USD/SEK 8.4040 USD/NOK 8.5507
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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