Forex – Dollar Extends Gains After Upbeat U.S. Jobs Data

Dollar pushes higher vs. other majors, U.S. data supports – The U.S. dollar extended gains against other major currencies on Friday, after data showed that the U.S. economy added more jobs than expected this month, adding to optimism over the strength of the economy.

The U.S. Labor Department said the economy added in January, beating expectations for a 184,000 gain.

The unemployment rate remained unchanged at this month, in line with expectations.

The report also showed that average hourly earnings rose in January, as expected.

The greenback was already supported after the Federal Reserve, at the conclusion of its policy meeting on Wednesday, signaled its confidence about inflation and growth in the U.S.

The Fed said that inflation is , boosting expectations for further interest rate hikes under incoming central bank head Jerome Powell.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.50% at 88.92 by 08:35 a.m. ET (12:35 GMT).

The euro and the pound pushed lower, with down 0.39% at 1.2465 and with declining 0.62% to 1.4348.

Research group Markit reported earlier Friday that its UK construction purchasing managers index fell to in January from 52.2 the previous month, compared to expectations for a downtick to only 52.0.

The yen and the Swiss franc also remained weaker, with up 0.70% at 110.16 and with gaining 0.40% to 0.9303.

Elsewhere, the Australian and New Zealand dollars extended losses, with tumbling 1.08% to 0.7952 and with retreating 0.99% to 0.7324.

Meanwhile, advanced 0.73% to trade at 1.2353.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.