The greenback surged across the board on Friday as the market's most closely-watched government report showed that U.S. eliminated far fewer-than-expected jobs last month, boosting speculations on the Federal Reserve may consider hiking interest rates sooner than initially expected.
U.S. non-farm payrolls came in at a reading of 11,000 jobs cut, much fewer than economists' forecast of 130,000 jobs lost. U.S. unemployment rate also unexpectedly dropped to 10.0% in November from October's 26-1/2 year high of 10.2%.
Eur/usd tumbled from 1.5092 to 1.4821, gbp/usd slumped from 1.6680 to 1.6422 while usd/chf rallied from 0.9980 to 1.0192 in late New York trade. The ICE futures U.S. dollar index, which tracks the greenback against a basket of six major currencies, closed up 1.49% at 75.746, its biggest one-day gain since mid-December 2008. Spot gold price also pummeled to as low as $1147.50 an ounce and closed down 4% after hitting a fresh record high of $1226.60 an ounce on Thursday.
The Japanese yen traded sideways in Asian after previous day's decline. Japan National Strategy Minister Kan said that he hopes yen will weaken further. Price later tumbled vs the dollar as well as against most of its counterparts after the release of the surprisingly strong U.S. jobs report. Usd/jpy jumped from 88.00 to 90.78, eur/jpy strengthened from 132.50 to 134.54, aud/jpy rose from 81.14 to 83.01 while gbp/jpy rallied from 145.48 to 149.08.
Data to be released next week include German factory orders, Canada building permits on Monday, Japan current account economic watch DI, leading indicators, Australia NAB business confidence, U.K. BRC retail sales, industrial production, manufacturing production, German industrial production, Canada BOC rate decision and housing starts data on Tuesday, Australia Westpac consumer confidence, Japan GDP, Switzerland jobless rate, German CPI, trade balance, U.K. trade balance, U.S. wholesales inventories on Wednesday, New Zealand RBNZ rate decision, Japan CGPI, machine orders, Australia unemployment rate, German WPI, Switzerland rate decision, U.K. BOE rate decision, U.S. jobless claims, trade balance, Fed budget, Canada trade balance on Thursday, U.K. PPI data, U.S. import and export price index, retail sales, University of Michigan survey, business inventories, Canada new housing price index on Friday.