EUR/USD
Dollar Eases To Euro, Extends Gains Versus Yen After Jobs Report [EUR/USD]
4/2/2008 2:29:36 PM The dollar went back on the defensive versus the euro but extended its recent gains versus the yen on Wednesday, with traders reacting to data signalling resilience in the US jobs market.
The jobs data shared center stage with Federal Reserve Chairman Ben Bernanke`s testimony on the US economy to a joint Congressional committee. Bernanke addressed the recent financial turmoil and actions that the Federal Reserve is taking to address these issues. For the first time, Bernanke admitted that GDP may contract slightly in the first half of 2008, citing a weaker near-term economic outlook.
Earlier in the day, Automatic Data Processing released its report on private sector employment in the month of March, showing that the private sector unexpectedly added jobs compared to the previous month.
The report showed that non-farm private employment increased by 8,000 jobs in March following a revised decrease of 18,000 jobs in the previous month.
The dollar rallied to a new 3-week high versus the yen on Wednesday, rising to 102.83 from an early level near 102. The dollar has pulled away from its mid-March 12-year low of 95.70, supported by increased risk appetite.
The buck eased a bit versus the euro, giving back some of yesterday`s big gains. The dollar slipped to 1.5665, down from a weekly high of 1.5532.
Euro zone producer prices rose 0.6% month-on-month in February, the Eurostat said Wednesday. Producer prices climbed at a faster pace of 0.9% in January. The monthly growth in producer prices matched economists` expectations.
The European Central Bank has refrained from lowering interest rates despite concerns about a strong euro, maintaining that inflation control remains its primary focus.
The dollar also softened slightly versus the sterling, falling back more than a penny to 1.9982. Withthe retreat, the dollar moved away from Tuesday`s 2-week high of 1.9728.
UK`s mortgage approvals decreased to GBP3.4 billion in February from GBP4.64 billion in the last year, the Building Societies Association said Wednesday. Net lending by building societies was GBP974 million, compared to GBP1.467 billion in the prior year. Meanwhile, building society gross lending amounted to GBP3.860 billion in February versus GBP4.20 billion in the year ago period.
Tags: EUR/USD
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