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FOREX-Dollar advances to four-month high after upbeat U.S. jobs data

Published 07/02/2020, 22:12
Updated 07/02/2020, 22:19
© Reuters.  FOREX-Dollar advances to four-month high after upbeat U.S. jobs data
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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DXY
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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

* Fed cites coronavirus as a risk to U.S. growth

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

(New throughout, updates prices, market activity and comments, adds Fed's monetary policy report)

By Gertrude Chavez-Dreyfuss

NEW YORK, Feb 7 (Reuters) - The dollar vaulted to a four-month peak against of basket of major

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

economic data this week, a scenario expected to keep interest rates steady.

The dollar index posted its largest weekly percentage gain in more than two years.

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 amid persistent fears about the coronavirus

outbreak in China, although investors were focused a little more on U.S. payrolls data for much of the New

York session.

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 given milder-than-normal temperatures. Economists

polled by Reuters had forecast payrolls would rise by 160,000 jobs in January. "Today's positive prints confirmed that the U.S. job market is firing on all cylinders, the U.S.

economy is expanding," said Olivier Konzeoue, FX Sales Trader at Saxo Markets in London. "The Federal

Reserve looks set to stay put for the time being."

In afternoon trading, the dollar index .DXY rose 0.2% to 98.687.

The dollar was also up 0.3% against the Swiss franc at 0.9772 franc CHF= , gained 0.1% versus the

Canadian dollar to C$1.3301 CAD- and climbed 0.3% versus sterling, which fell to $1.2887 GBP= .

The greenback, though, fell 0.2% against the yen to 109.76 yen JPY= on what analysts said was more a

safe-haven play for the Japanese currency in the wake of the coronavirus outbreak.

The Fed, in its latest monetary policy report to the U.S. Congress released on Friday, cited the

fallout from the spreading virus as one of the risks to the U.S. economic outlook. "This is the first major hint that the Fed is concerned that the virus could possibly derail global

growth," said Edward Moya, senior market analyst, at OANDA in New York.

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 globally, with 320 cases in 27

countries and regions outside mainland China, a Reuters tally of official statements shows. Across the Atlantic, 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 $1.0943 EUR= , and was last down 0.3%. It has lost 1.3% since Monday, its worst weekly loss 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 3:53 PM (2053 GMT)

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

Previous Change

Session

Euro/Dollar EUR= $1.0945 $1.0980 -0.32% -2.36% +1.0985 +1.0943

Dollar/Yen JPY= 109.7600 109.9900 -0.21% +0.83% +110.0200 +109.5400

Euro/Yen EURJPY= 120.14 120.78 -0.53% -1.48% +120.8000 +120.1000

Dollar/Swiss CHF= 0.9773 0.9744 +0.30% +0.97% +0.9781 +0.9740

Sterling/Dollar GBP= 1.2887 1.2928 -0.32% -2.81% +1.2958 +1.2887

Dollar/Canadian CAD= 1.3302 1.3284 +0.14% +2.43% +1.3319 +1.3280

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

Euro/Swiss EURCHF= 1.0698 1.0702 -0.04% -1.42% +1.0710 +1.0680

Euro/Sterling EURGBP= 0.8492 0.8492 +0.00% +0.45% +0.8497 +0.8462

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

Dollar/Dollar

Dollar/Norway NOK= 9.2933 9.2171 +0.83% +5.87% +9.2986 +9.2168

Euro/Norway EURNOK= 10.1730 10.1228 +0.50% +3.41% +10.1974 +10.1184

Dollar/Sweden SEK= 9.6564 9.6221 +0.03% +3.31% +9.6615 +9.6083

Euro/Sweden EURSEK= 10.5704 10.5672 +0.03% +0.97% +10.5844 +10.5357

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

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