Previous session overview

The dollar gained against the yen but slipped slightly against the euro and more dramatically against higher-yielding currencies Friday as a better-than-expected U.S. jobs report pointed to a global economy emerging from the doldrums.

The jobs data created a positive environment for investor risk-taking, leading to strong gains in the Australian and New Zealand dollars against the low-yielding greenback, while the U.S. currency trounced the yen, seen as the ultimate safe haven.

The ICE U.S. Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 80.512 from 80.571.

In the immediate wake of the better-than-expected jobs data, the euro dropped to an intraday low against the dollar, but in the volatile trading that typically accompanies major data releases it was able to recoup most of its loss before turning to a gain on the day.

By late morning trading, the Australian dollar had gained 1% against the U.S. dollar while the New Zealand dollar racked up a 1.5% gain. The Canadian dollar and less-widely traded currencies such as the Brazilian real and Swedish krona also rose against the greenback.

The British pound reversed a small gain to turn sharply lower after the data, and then rebounded to trade at USD1.5030, up very slightly from Thursday.

Market expectation

USDJPY high print was JPY90.55, we're told, the pair making a further push higher and erasing that last of any supply layered ahead of JPY90.50, the backdrop of firm US stocks adding to the appeal of risk and, as traders note, very few have this trade on after several weeks of range action in the pair. Techs analysts suggest resistance at JPY90.80, the 55-day moving average.

Pound pressing to fresh highs for the day near USD1.5100 as risk-appetites improve and as sterling-yen in particular makes an impressive recovery off lows seen earlier in the week. Cable offers seen in place to USD1.5100 but now largely eroded, tech resistance eyed at USD1.5135/40.

EURUSD finally flushes the reported stops above USD1.3610 and above the overnight high for current trade near USD1.3620. Offers reported earlier at USD1.3620, said to extend to USD1.3635 with more stops above USD1.3640.

Disclaimer: the data made available by Dukascopy (Suisse) SAis for informational purposes only. Publication of this data by Dukascopy (Suisse) SA does not constitute provision of investment advice and Dukascopy (Suisse) SA assumes no responsibility with regard toany information, forecast or recommendation herein contained and assumes no responsibility with regard toany losses resulting from any activities conducted the basis of this data, including any investment decisions.

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