The euro see-sawed against the dollar in a highly volatile market during the US trading session, in reaction to the key US non-farm payroll report. The surge in US job creation boosted investor confidence about the outlook for the world’s biggest economy and risk currencies benefitted from the positive data. 243,000 additional jobs were created, beating expectations of 150,000, which was lower than December’s 200,000.
EURUSD swung from 1.3201 to 1.3065 then rebounded to 1.3166. Euro remains vulnerable though, as the Greek debt issue is still ongoing.
GBPUSD fell post-non-farm payrolls to 1.5749 then bounced to close the week at 1.5811. Earlier in the day sterling was boosted by better than expected UK Services PMI data, which signalled that the British economy may avoid a recession.
The Canadian dollar also experienced large swings. The loonie ended the week at its strongest level in just over three months due to the surprisingly better employment data from the US. This boost in risk appetite benefitted the commodity-price sensitive Canadian currency which had suffered a blow earlier in the session following soft Canadian jobs data. USDCAD ended down at 0.9932 versus an early session high of 1.0032.
The dollar surged against the yen after the jobs report to 76.73 yen versus an earlier day low of 76.13. This reduced speculation the Bank of Japan will intervene in the currency markets to stem yen appreciation, as it had done in October last year.