Forex Review – Dollar surges on US jobs; USDJPY hits 11-mth high

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The dollar jumped more than 1 percent against the Japanese yen in the North American trading session on Friday to hit an eleven-month high after the Non-farm payroll report showed the U.S. economy created more jobs than expected in February, and added 227,000 jobs. USDJPY surged to a high of 82.63 from 81.76, the highest level since April last year.

Euro was broadly weaker compared to Thursday, due to the announcement on the Greek credit default swaps.  Greece completed the PSI participation deadline today by activating the collective action clauses to boost the number of private creditors in the debt swap deal. The ISDA (International Swaps and Derivatives Association) said Greece’s debt restructuring triggered payment on bond insurance contracts.  EURUSD fell to a low of 1.3095 from an early day high of 1.3276.

A stronger dollar pushed up the ICE dollar index which measures the greenback against a basket of six currencies, rising to 79.985, up from 79.512 versus 79.090 late Thursday.

The dollar rose against the Swiss franc to the highest level in three weeks. USDCHF hit a high of 0.9205, after rising from a session low of 0.9114.

Sterling fell further against the dollar due to damp risk appetite, with GBPUSD tumbling to 1.5661 from a U.S. session high of 1.5804. The pound began weakening early in the London session after the disclosure of weak U.K. industrial production data, which fell by more than expected to 0.4 percent  in February.

Crude-oil prices  ended higher, as better-than-expected data on U.S. employment in February lifted prospects for oil demand. Crude rose to $108.18 a barrel in New York trading. That was oil’s third session of gains and the highest level in over a week.