CANBERA (dpa-AFX) - The U.S. dollar moved up against its major peers in the European session on Friday, as the nation's job growth accelerated in January, cementing expectations for a rate hike by the Federal Reserve in March.
Data from the Labor Department showed that U.S. employment increased much more than expected in the month of January.
The Labor Department said employment jumped by 467,000 jobs in January compared to economist estimates for an increase of 150,000 jobs.
The report also showed the increase in employment in December was upwardly revised to 510,000 jobs compared to the previously reported 199,000 jobs.
Meanwhile, the Labor Department said the unemployment rate inched up to 4.0 percent in January from 3.9 percent in December. Economists had expected the unemployment rate to hold unchanged.
Treasury yields jumped following the report, with the benchmark yield on the 10-year note up by 1.89 percent. Yields move inversely to bond prices.
Richmond Federal Reserve President Thomas Barkin said on Thursday that the central bank should start raising interest rates, but the pace of rate increases remained uncertain.
'It's a straightforward call to say we should get interest rates back in a better position,' Barkin said, adding that there is no enough information regarding what should be required to curb the economy.
The greenback showed mixed trading against its major rivals in the Asian session. While it rose against the yen, it held steady against the franc and the pound. Versus the euro, it fell.
The greenback added 0.7 percent against the pound to touch a 3-day high of 1.3505. The pound-greenback pair had ended yesterday's trading session at 1.3594. Immediate resistance for the dollar is likely seen around the 1.32 level.
Survey results from IHS Markit showed that the UK construction sector expanded at the fastest pace in six months in January.
The Chartered Institute of Procurement & Supply construction Purchasing Managers' Index rose to 56.3 in January from 54.3 in December. A score above 50.0 indicates expansion in the sector.
The greenback gained 0.4 percent against the yen, approaching a 4-day high of 115.39. The pair had closed Thursday's deals at 114.98. The greenback may face resistance around the 118.00 region, if it gains again.
The greenback was 0.7 percent higher against the franc, at a 3-day high of 0.9256. At yesterday's trading close, the pair was quoted at 0.9193. Further rally in the currency may challenge resistance around the 0.94 region.
The greenback rebounded to 1.1415 against the euro, after falling to 1.1484 at 6:45 am ET, which was its lowest level since November 11. The pair was worth 1.1435 when it closed deals on Thursday. Should the currency rallies again, 1.12 is possibly seen as its next resistance level.
Data from Eurostat showed that Eurozone retail sales declined more than expected in December.
Retail trade decreased 3 percent month-on-month, in contrast to the 1 percent increase in November. This was the first fall in five months and much bigger than the economists' forecast of -0.5 percent.
The greenback was up against the loonie, at a 1-week high of 1.2788. The greenback was trading at 1.2675 against the loonie at yesterday's close. The greenback is seen finding resistance around the 1.29 level.
The greenback touched 3-day highs of 0.7052 against the aussie and 0.6590 against the kiwi, up from its Asian session's low of 0.7152 and a 9-day low of 0.6683, respectively. The currency had ended yesterday's deals at 0.7138 against the aussie and 0.6658 against the kiwi. The greenback is likely to locate resistance around 0.68 against the aussie and 0.63 against the kiwi.
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