The US dollar fell vs. most major currencies today as US jobs data helped increase risk tolerance among investors. Government data showed that the US economy shed 539,000 jobs in April, beating forecasts of 663,000 job cuts. An increase in the unemployment rate to 8.9% from 8.5% was the lowest since 1983. Stress test results released yesterday also helped bring more clarity to the market, as the government requested that 10 of the 19 top US banks raise $75 billion more to withstand a market downturn. Capital shortages by the banks were also lo
The euro strengthened against the dollar as confidence in the recovery of the global economy helped boost risk tolerance. German industrial output data was unchanged month-on-month in March, giving hope that the worst is over.
Sterling rose against the dollar after rises on equity markets helped investor confidence. UK producer price data pointed towards a downward trend in prices as output price inflation eased to 1.2% in April, from 2.0% in March. In the January-March period, output fell 12.0% compared with the previous quarter, which is the biggest drop since 1990.
The yen remained steady against the dollar as optimism in the recovery of the global economy helped increase risk appetite, encouraging investors to sell both safe-haven currencies.
The Canadian dollar hit a six-month high of C$1.1569 against the dollar after a strong showing in domestic data. Canada unexpectedly added 35,900 jobs in April, beating forecasts of a loss of 50,000 jobs. The report is being scrutinized as an aberration. The jobless rate remained steady at a seven-year high of 8.0%.
The Australian dollar and the New Zealand dollar resumed its strengthening against dollar today as optimism about the world economy helped increase risk appetite towards high-yielding currencies. Strong jobs data from both countries yesterday continued to help the currencies.
The Mexican peso weakened against the dollar after profit-taking on Mexican assets, which had rebounded sharply this week as worries about a flu outbreak subsided.
10-Year Treasury Note Yield: 3.276%
Dow Jones Industrial Average: 8,485.00 +65.00