US dollar recorded its lowest level in 14 months against the euro on Friday, because the U.S. jobs-data reinforced the expectations of the U.S. Federal Reserve will keep monetary easing program, while the dollar rose to its highest price since May 2010 against the yen.
The Labor Department said that the U.S. economy added 157,000 jobs in December, slightly less than was expected to increase to 160,000. On the hand, the unemployment rate rose slightly to 7.9% from 7.8% in November.
However, non-farm payrolls figures have been revised in November and December to a sharp rise for 247,000 196,000 respectively.
According to a report released, the data of the U.S. economy shrank by 0.1% in the fourth quarter, contrary to expectations for growth of 1.1%. A sharp slowdown from the 3.1% growth in the previous quarter.
On Wednesday, the Fed said that (he) would continue monetary easing program by $ 85 = billion euros “If things do not improve prospects for the labor market significantly.”
The US central bank reiterated that it will continue to hold interest rates near zero, until the unemployment rate to less than 6.5%.
The single currency found support after data was released. Also it showed that manufacturing activity in the euro-zone improved in January stabilizing inflation and unemployment rates and confirming the view that the crisis in the region to decline.
Manufacturing purchasing managers’ index in the euro zone was improved to 47.9 from 46.1 in December. It is still below the 50 level, which is the limit that separates contraction from expansion. But it is a slower rate of contraction in 11 months.
At the same time, separate reports showed that the rate of inflation in the euro zone fell to 2% in January from 2.2% in December, almost agree to the goal of the European Central Bank’s goal, while the unemployment rate held steady at 11.7% in the last month.
EUR / USD hit 1.3711 on Friday, the highest price for the pair since mid-November 2011, before settling back at 1.3639. The EUR / JPY reached its high at 126.97, the highest price for the pair since April 2010, before settling at 126.55.
The yen fell broadly on expectations that Japanese Prime Minister Shinzo Abe will keep the pressure on the Bank of Japan to implement monetary easing measures and more power to fight deflation is needed.
The dollar extended gains against the yen on Friday, after the data showed that U.S. manufacturing activity improved to its highest level in nine months in January, while consumer sentiment improved unexpectedly in January.
USD / JPY 92.97 on Friday, before settling at 92.75 higher 1.16%, to a record and 2.52% for the week.
Elsewhere, the pound fell by 1% against the dollar on Friday, which amounted to 15, its lowest price in 15 months against the euro, after the release of manufacturing data in the United Kingdom came disappointing. That increased concerns about the faltering economy.
U.S. Dollar kept unchanged against the dollar pound / GBP close to the lowest level in five months in 1.5696, while the EUR / GBP shedding 1.44% to close at 0.8692.
This week, investors awaited the results of future meetings of the policy by the European Central Bank, the Bank of England and the Reserve Bank of Australia. While what have been focused on is United Fiallolayat and UK data on service sector activity ..
Before next week, Forex Pros has been compiling a list of these and other significant events of the events that are likely to affect the markets.
Monday, February 4
In the euro area, Spain will publish government data on the change in the number of unemployed.
United Kingdom will e-publish a report on activity in the construction sector, a leading indicator of economic health.
The United States will publish official data on factory orders, a leading indicator of production.
Later Monday, New Zealand is to publish government data on labor costs, a leading indicator of consumer inflation.
Tuesday, February 5
Australia will publish official data on the trade balance, the difference between the value of imports and exports, as well as data on house-prices inflation. At the same time, the RBA Sicok announce the official interest rate and publish the amended statement.
Markets remain in New Zealand closed for a national holiday.
United Kingdom will e-publish a report on service sector activity, a leading indicator of economic health. As well as industry data on retail sales.
The euro zone is to publish official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity, while Spain and Italy will publish data on service sector activity. Elsewhere in Europe, Switzerland is to publish government data on the trade balance.
The Institute for Supply Management will publish a report on service sector activity in the United States.
Wednesday, February 6
Australia will publish official data on retail sales, the primary gauge of consumer spending, which accounts for the majority of overall economic activity.
In the euro zone, Germany will publish official data on factory orders, a leading indicator of production.
Canada will publish the Ivey PMI, a leading indicator of economic health.
The United States will publish government data on crude oil stockpiles.
Also Wednesday, New Zealand is to publish government data for three months for a change in the number of workers and the unemployment rate.
Thursday, February 7
Japan is to publish official data on core machinery orders, a leading indicator of production.
Australia will publish a quarterly government data on the change in the number of workers and the unemployment rate, as well as private sector data on business confidence.
The Swiss National Bank will publish a report on foreign exchange reserves, which give an insight into the size of the Bank’s operations currency market. Switzerland will also publish official data on consumer climate.
The UK is to publish government data on industrial production and industries, as well as a report on the trade balance. Later the same day, the Bank of England will announce interest rates.
In the euro zone, both Spain and France will carry the government bond auctions in the past 10 years, while Germany will publish official data on industrial production. At the same time, the European Central Bank will announce interest rate and the policy to be followed in the press conference with President Mario Draghi.
Canada will publish a government report on building permits, as well as data on inflation in the prices of new homes.
The United States will publish data on the weekly government report on initial jobless claims.
Friday, February 8
Japan is to publish official data on the current account. Elsewhere, China will publish official data on consumer price inflation.
Reserve Bank of Australia will publish a statement of monetary policy, which gives insight into the bank’s point of view about the outlook for the economy.
Switzerland is to publish official data on unemployment and retail sales.
Later the same day, Canada will publish government data on the change in the number of workers and the unemployment rate, as well as data on the trade balance.
The United States will besiege week with official data on the trade balance