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FOREX-Dollar gains vs yen, others after U.S. jobs report

Published 08/05/2020, 21:26
Updated 08/05/2020, 21:30
© Reuters.
DX
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* U.S. job losses better than expected in April
* Dollar on track for weekly gains vs euro, Swiss franc
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Adds new comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, May 8 (Reuters) - The U.S. dollar rose against some currencies on Friday after data showed
the world's largest economy lost fewer jobs than expected last month on fallout from the coronavirus
pandemic.
The greenback posted its largest weekly gain versus the euro in more than a month, although that was
more related to the European single currency's issues concerning the European Central Bank's asset
purchases.
The dollar also notched its best weekly performance against the Swiss franc in a more than a month as
well.
Friday's data showed U.S. job losses in April hit 20.5 million, compared to expectations of 22
million. The unemployment rate was 14.7%, lower than the market forecast of 16%. "This economic skid is so severe, does it really make much of a difference between a 20.5 million jobs
lost and 22 million?" said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
"It doesn't really change anything. The market has rightly shrugged it off," he added.
In afternoon trading, the dollar rose 0.4% against the yen to 106.71yen JPY=EBS , while the euro was
flat against the dollar at $1.0836 EUR=EBS .
The dollar index, as a result, was little changed at 99.77 =USD .
Risk appetite was broadly higher on the day, with U.S. stocks and Treasury yields higher.
"Wall Street did not learn anything new regarding the U.S. labor situation, but one thing seems
certain, price action is signaling that the majority of these job losses are expected to be short-lived,"
said Edward Moya, senior market analyst, at OANDA in New York.
"Without a vaccine, it is hard to imagine that large parts of the economy (leisure, hospitality and
retail) will recover the majority of jobs anytime soon. The surge in wages is getting no attention as the
widespread job losses were mainly hurting the lower paying ones," he added.
Wall Street did not learn anything new regarding the US labor situation, but one thing seems certain,
price action is signaling that the majority of these job losses are expected to be short-lived.

========================================================
Currency bid prices at 4:17PM (2017 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0834 $1.0832 +0.02% -3.34% +1.0875 +1.0816
Dollar/Yen JPY= 106.7100 106.2700 +0.41% -1.98% +106.7400 +106.2300
Euro/Yen EURJPY= 115.63 115.12 +0.44% -5.18% +115.7400 +115.0400
Dollar/Swiss CHF= 0.9710 0.9728 -0.19% +0.33% +0.9739 +0.9682
Sterling/Dollar GBP= 1.2405 1.2361 +0.36% -6.44% +1.2467 +1.2357
Dollar/Canadian CAD= 1.3927 1.3970 -0.31% +7.25% +1.3999 +1.3908
Australian/Doll AUD= 0.6529 0.6494 +0.54% -7.01% +0.6547 +0.6494
ar
Euro/Swiss EURCHF= 1.0523 1.0539 -0.15% -3.03% +1.0546 +1.0524
Euro/Sterling EURGBP= 0.8733 0.8761 -0.32% +3.30% +0.8769 +0.8714
NZ NZD= 0.6133 0.6083 +0.82% -8.95% +0.6147 +0.6087
Dollar/Dollar
Dollar/Norway NOK= 10.2168 10.2358 -0.19% +16.39% +10.2599 +10.1771
Euro/Norway EURNOK= 11.0740 11.1040 -0.27% +12.56% +11.1105 +11.0503
Dollar/Sweden SEK= 9.7642 9.8080 -0.45% +4.46% +9.8208 +9.7349
Euro/Sweden EURSEK= 10.5838 10.6312 -0.45% +1.09% +10.6374 +10.5835

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Australian dollar https://tmsnrt.rs/3biO1Gq
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