After a pullback following the release of weak U.S. jobs data for November, the U.S. dollar rebounded against its major rivals in the European session on Friday.
Data from the Labor Department showed that U.S. employment increased much less than expected in the month of November.
The report said non-farm payroll employment rose by 210,000 jobs in November after surging by an upwardly revised 546,000 jobs in October.
Economists had expected employment to spike by 550,000 jobs compared to the jump of 531,000 jobs originally reported for the previous month.
Despite the much weaker than expected job growth, the unemployment rate slid to 4.2 percent in November from 4.6 percent in October. Economists had expected the unemployment rate to edge down to 4.5 percent.
With the much bigger than expected decrease, the unemployment rate fell to its lowest level since hitting 3.5 percent in February of 2020.
U.S. senators passed a stopgap spending bill to keep the government funded through February 18, ahead of today’s deadline.
The bill was approved by a vote of 69-28, amid stiff opposition from Republicans regarding Biden’s Covid-19 vaccine mandates.
The dollar rose in the Asian session, as investors awaited key U.S. jobs data for more clues on the monetary policy outlook.
The greenback reversed from its early lows of 112.96 against the yen and 1.3310 against the pound and touched a 2-day high of 113.61 and a 3-day high of 1.3242, respectively. If the greenback climbs further, 115.00 and 1.30 are likely seen as its next resistance levels against the yen and the pound, respectively.
The greenback climbed to a 3-day high of 1.1272 against the euro, from a low of 1.1333 seen at 8:30 am ET. The pair was worth 1.1301 when it closed deals on Thursday. The greenback is seen finding resistance around the 1.10 level.
Data from Eurostat showed that Eurozone retail sales increased in October after falling in the previous month.
Retail sales grew 0.2 percent month-on-month in October, as expected, reversing a 0.4 percent fall in September.
The greenback rebounded to 0.9211 against the franc, after falling to a 2-day low of 0.9169 at 8:30 am ET. At yesterday’s trading close, the pair was quoted at 0.9202. The currency is likely to locate resistance around the 0.94 level.
The greenback moved up to more than 1-year highs of 0.6752 against the kiwi and 0.7017 against the aussie from Thursday’s closing values of 0.6813 and 0.7094, respectively. Immediate resistance for the U.S. currency is seen around 0.66 against the kiwi and 0.68 against the aussie.
In contrast, the greenback fell to a 2-day low of 1.2744 against the loonie, after touching 1.2845 at 5:30 am ET, which was its highest level since September 21. The greenback was trading at 1.2805 against the loonie at yesterday’s close. The currency is likely to face support around the 1.26 region, if it falls again.
The material has been provided by InstaForex Company – www.instaforex.com