Dollar Gains on Strong Jobs Data; Loonie Resilient
The dollar rose and Treasuries slumped across the curve after stronger-than-expected headline jobs growth in May, even as prior month readings were revised lower. The loonie outperformed G-10 peers after Canadian employment grew faster than expected last month.
The Bloomberg Dollar Spot Index gains 0.3%, earlier at day’s high after release of US labor data.
May nonfarm payrolls rose 139k (126k expected); two-month net revision was -95k; unemployment rate steady at 4.2%; average hourly earnings grew 0.4% (0.3% expected).
USD/JPY rises as much as 1% to 144.97 session high, strongest in over a week.
Expectations are intensifying that the Japanese government may adjust debt issuance as soon as next month.
Yen dragged by bounce in risk sentiment post-US jobs, rally in US equities.
USD/CHF gains 0.5% to 0.8238..
EUR/USD down 0.4% to 1.1402 after US release.
Pair sees good hedge fund demand post-US data.
The ECB should take a break from lowering interest rates to give officials a chance to assess recent shocks, particularly from trade, according to Governing Council member Yannis Stournaras.
GBP/USD drops 0.3% to 1.3533.
Source: Bloomberg
