FX Roundup: Global crosses mixed but dollar sees marginal dip

Global crosses ended the European trading week on mixed turf, but the dollar slipped marginally against select currencies towards the end of market proceedings on Friday.

US employers added more jobs than expected in February but wages declined compared to a month earlier, the Labor Department revealed.

Total non-farm payrolls employment rose 242,000 last month, beating analysts' expectations for a 195,000 increase.

Employment gains were driven by jobs in health care, social assistance, retail trade, food and drinking services, and private educational services. Job losses continued in mining as the slump in commodity prices hurt the sector.

January's figures were revised to an increase of 172,000 from an earlier estimate of 151,000. The unemployment rate was unchanged at 4.9% in February, as expected by analysts.

At 1707 GMT, the dollar rose 0.25% against the yen changing hands at JPY113.97. However, after four sessions flip-flopping in negative territory, the euro rose 0.39% against the greenback changing hands at $1.1000.

The pound continued its recovery run with a referendum on the country’s membership of the European Union set for 23 June, fetching on average $1.4228, rising another 0.35% intraday.

Commodity linked currencies saw a better session in Europe at the expense of the dollar for a second successive session. The greenback fell 0.49% against the Canadian dollar changing hands at CAD$1.3338.

The Australian dollar rose 1.02% against the greenback exchanging at US$0.7427, as did the New Zealand dollar notching gains of 1.15% exchanging at US$0.6801.

Summing up the week, Alvin T. Tan, analyst at Societe Generale, noted: “Commodity currencies outperformed, as global risk sentiment and crude oil prices rose in tandem. The Australian dollar was further aided by better-than-expected fourth GDP growth data, which underscored the resilience of the Australian economy to weaker commodity prices and Chinese growth.

“NZD was dragged up too, though AUD/NZD traded to the higher end of its five-month range. Pound also did well in G10 space partly on a bounce from last week's Brexit-inspired heavy selling and partly on month-end flows selling EUR/GBP. The USD, JPY and CHF all lost ground to the higher beta currencies amid the broad risk rally.”

A plethora of other commodity currencies also rose, particularly in Latin America, with the dollar falling 0.88%, 1.12%, 1.00% and 2.01% against the Mexican, Colombian, Chilean pesos and the Brazilian Real respectively.