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FOREX-Dollar climbs to four-month peak after robust U.S. jobs data

Published 07/02/2020, 19:11
Updated 07/02/2020, 19:19
© Reuters.  FOREX-Dollar climbs to four-month peak after robust U.S. jobs data
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* U.S. non-farm payrolls show 225,000 job gains

* Euro hurt by poor German data, worst week since November

* Coronavirus fears keep sentiment fragile, yen gains

* Death toll from virus reaches 637

* GRAPHIC-World FX rates in 2019: http://tmsnrt.rs/2egbfVh

(Recasts, adds new comment, updates prices)

By Gertrude Chavez-Dreyfuss

NEW YORK, Feb 7 (Reuters) - The dollar rallied to a four-month high versus a basket of major

currencies on Friday, bolstered by a strong U.S. non-farm payrolls report that followed a spate of upbeat

economic reports this week, a scenario which should keep interest rates steady for now.

The U.S. currency also hit a two-month high against sterling and the Canadian dollar, a six-week peak

versus the Swiss franc and a four-month high against the euro.

However, the dollar fell against the safe-haven yen, but that was more related to fears about the

coronavirus outbreak in China.

As the New York session progressed, the U.S. job report showed it had the bigger impact on currency

markets than the coronavirus.

Data showed U.S. nonfarm payrolls increased by 225,000 jobs last month, with employment at

construction sites increasing by the most in a year amid milder-than-normal temperatures. Economists

polled by Reuters had forecast payrolls would rise by 160,000 jobs in January. "The data added to a resilient week for the U.S. economy and could buy the Fed more time along the

sidelines, a dollar-friendly situation," said Joe Manimbo, senior market analyst at Western Union Business

Solutions in Washington

In midday trading, the dollar index .DXY , which measures the currency against a basket of rivals,

rose 0.2% to 98.687.

The U.S. dollar was also up 0.3% against the Swiss franc at 0.9777 franc CHF= , gained 0.2% versus

the Canadian dollar to C$1.3307 CAD- and climbed 0.2% versus sterling, which fell to $1.2894 GBP= .

The greenback, though, fell 0.2% against the yen to 109.79 yen JPY= on what analysts said was more a

safe-haven play for the Japanese currency.

Brian Daingerfield, head of G10 FX strategy at Natwest Markets in Stamford, Connecticut, said the

coronavirus has injected a lot of uncertainty in the market, as investors wonder whether January's

improvement in global economic data in can be sustained.

The death toll in mainland China reached 637 on Friday, with a total of 31,211 cases, WHO chief Tedros

Adhanom Ghebreyesus said on Friday in Geneva. The virus has spread around the world, with 320 cases in 27

countries and regions outside mainland China, a Reuters tally of official statements shows. The euro fell to its lowest since October on Friday after German industrial output recorded its

biggest decline in a decade in December.

The European single currency dropped to as low as $1.0946 EUR= , and was last down 0.3%. It has lost

1.2% since Monday, putting it on track for its worst week since November.

The offshore yuan was down 0.4% at 7.005 yuan per dollar CNH= , though it was still set for a small

gain this week thanks to stimulus from China's central bank and Beijing's announcement of tariff cuts on

U.S. imports. Currency bid prices at 12:52 PM (1752 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.0942 $1.0980 -0.35% -2.38% +1.0985 +1.0944

Dollar/Yen JPY= 109.7900 109.9900 -0.18% +0.85% +110.0200 +109.5400

Euro/Yen EURJPY= 120.15 120.78 -0.52% -1.48% +120.8000 +120.1300

Dollar/Swiss CHF= 0.9775 0.9744 +0.32% +1.01% +0.9781 +0.9740

Sterling/Dollar GBP= 1.2898 1.2928 -0.23% -2.72% +1.2958 +1.2895

Dollar/Canadian CAD= 1.3301 1.3284 +0.13% +2.43% +1.3319 +1.3280

Australian/Doll AUD= 0.6677 0.6730 -0.79% -4.90% +0.6736 +0.6663

Euro/Swiss EURCHF= 1.0699 1.0702 -0.03% -1.41% +1.0710 +1.0680

Euro/Sterling EURGBP= 0.8482 0.8492 -0.12% +0.33% +0.8497 +0.8462

NZ NZD= 0.6399 0.6456 -0.88% -5.00% +0.6463 +0.6401

Dollar/Dollar

Dollar/Norway NOK= 9.2975 9.2171 +0.87% +5.91% +9.2983 +9.2168

Euro/Norway EURNOK= 10.1750 10.1228 +0.52% +3.43% +10.1974 +10.1184

Dollar/Sweden SEK= 9.6578 9.6221 +0.04% +3.33% +9.6615 +9.6083

Euro/Sweden EURSEK= 10.5709 10.5672 +0.04% +0.97% +10.5844 +10.5357

Euro vs U.S. dollar https://tmsnrt.rs/37aqSnn

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