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Saturday, March 12, 2016
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Investing.com - The dollar rose against the other major currencies on Monday, as Friday’s employment data still lent some support, although lower expectations for a U.S. rate hike in the near future continued to weigh. The U.S. economy added 242,000 new jobs last month and the unemployment rate held steady at an eight-year low of 4.9%. But average hourly earnings fell by 0.1% during February, reversing the 0.5% rise seen in January. The weak wage numbers indicated that consumer inflation is likely to remain muted. Federal Reserve policymakers are watching inflation closely as they try to determine when to raise rates again. EUR/USD dropped 0.43% to 1.0959. The euro came under pressure after data earlier showed that German factory orders fell 0.1% in January, adding to a 0.2% drop in December. Domestic orders fell by 1.6% during the month, pointing to weakening demand within the euro zone’s largest economy. Investors were looking ahead to Thursday’s European Central Bank meeting after the bank disappointed expectations with a smaller-than-expected stimulus move at its December meeting. USD/JPY slid 0.30% to trade at 113.43. Bank of Japan Governor Haruhiko Kuroda underlined the positive aspects of the negative interest rate policy adopted by the BoJ in January and which took effect on February 16. The policy “works in the direction of raising stock prices and lowering the value of the yen,” Kuroda said during a speech in Tokyo. The dollar was higher against the pound and the Swiss franc, with GBP/USD down 0.58% at 1.4145 and with USD/CHFclimbing 0.64% to 0.9992. Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.44% at 0.7405 and with NZD/USD retreating 0.89% to 0.6757.
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