The US dollar continued to gain against most major currencies as U.S. employment data showed better than expected results and continuing uncertainty in the Eurozone. Data from the Labor Department showed employers added 290,000 jobs vs. a survey by economists estimating an increase of 190,000. Uncertainty looms over Europe after the European Central Bank President Jean-Claude Trichet failed to secure investor's confidence over Greece's escalating fiscal crisis sending financial markets into a steep slide yesterday. Watch the dollar to continue to benefit from safe-haven flows.
The euro surrendered gains against the dollar on Friday as debt crisis in Greece continues and the nation threatens to act as a contagion to other at risk European countries. Greece's social instability intensified following the nation's parliament approval of the bail-out requirement plan drafted by the European Union and the International Monetary Fund. Major concerns are the fears that the debt crisis may spread to other Eurozone nations Spain and Portugal.
Sterling reached a one-year low vs. the dollar and fell sharply against the euro following the UK's general election in no party with a clear majority. Analysts suggest the pound may continue to struggle as it remains unclear which party may form a government and whether that government will be able to employ measures to reduce Britain's towering deficits.
The Japanese yen gave back some of its overnight gains after positive employment data from the US. As debt woes of Greece continue to haunt the market, the yen may continue to strengthen against the dollar.
Canadian dollar shot up against its US counterpart after a stronger-than-expected jobs report adding further pressure on the Bank of Canada to raise rates soon. Statistics Canada reported the economy added 108,700 jobs in April, the highest since Statistics Canada began tracking the data in 1976. Any gains in the loonie were capped by Euro zone debt concerns.
The Australian dollar continues to weaken vs. the US dollar set for its worst week in nearly 16 months. The New Zealand dollar rebounded against the greenback, after hitting a one month low overnight. The fear of Greece's debt-contagion sparked investors to sell off their riskier assets putting pressure on the Aussie and the Kiwi.
10-Year Treasury Note Yield: 3.429%
Dow Jones Industrial Average: 10,509.67 - 9.29