Forex - Dollar edges up after stronger-than-expected US payrolls data |
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Fri, 09 Mar 2007 15:11
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LONDON (AFX) - The dollar edged higher against major currencies after key data out of the US showed the economy created 97,000 jobs in February.Though analysts had expected a similar reading of around 100,000, the fact that data for January and December were revised up by a total of 55,000 puts the data well above expectations.Moreover, after Wednesday's report from payroll services firm ADP predicted a gain in payrolls of just 57,000, many had begun to revise down their forecasts. Also positive for the dollar meanwhile was news that the unemployment rate unexpectedly dropped to 4.5 pct from 4.6 pct, as well as a smaller-than-expected US trade deficit for January.At 1.39 pm GMT, the euro was trading at 1.3110 against the dollar, down from 1.3157 just prior to the data being released, while the pound dropped to 1.9315 from 1.9328. Against the yen meanwhile the dollar surged above the 118 mark for the first time in eight days from 117.28 previously.'There were good upward revisions in both January and December numbers, which offset the on consensus headline of 97k. US trade also came in narrower than expected, offering another positive for dollar bulls,' said Russell Bloom at Thomson IFR Markets.The solid US data will also boost forecasts for global growth and underpin the recent renewed demand for carry trades -- where money is borrowed in countries with low interest rates like Japan to be invested in higher-yielding economies elsewhere --, hence the sharp drop in the yen, analysts said.jessica.mortimer@thomson.comjkm/rarCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Forex - US dollar hits 120-yen mark for first time in more than a year 