FOREX-Dollar gains vs yen on upbeat jobs data, euro edges up

Sun Jun 8, 2014 8:22pm EDT

Related Topics

* Upbeat U.S. nonfarm payrolls help dollar gain vs yen

* Euro edges up, keeps shaking off post-ECB easing impact

* Antipodean currencies on steady footing after ECB

By Shinichi Saoshiro

TOKYO, June 9 (Reuters) - The dollar edged up against the yen in early trade on Monday thanks to upbeat U.S. employment data while the euro crept up from multi-month lows, continuing to shake off the impact from the European Central Bank's monetary easing last week.

The dollar rose 0.2 percent to 102.62 yen, adding to gains made on Friday when data showed U.S. nonfarm payrolls increased by 217,000 last month, returning to its pre-recession level and offering confirmation the world's largest economy has snapped back from a winter slump.

The euro climbed 0.1 percent to $1.3650, pulling away from a four-month low of $1.3503 hit Thursday when the ECB cut all its main rates to record lows and announced an array of measures to halt a disinflation trend.

"The series of measures unveiled by the ECB will not start having an impact right away. As such, short covering of euro short positions, which had built up considerably prior to the ECB meeting, is being covered by participants pocketing profits," said Shinichiro Kadota, chief Japan FX strategist at Barclays in Tokyo.

There was little market reaction to a series of data out of Japan. First quarter economic growth was revised up to 1.6 percent from a preliminary 1.5 percent and the country logged a third straight month of current account surplus, albeit lower than expected, in April

"The market is more focused on data pertaining to inflation and its possible impact on the Bank of Japan's monetary policy," said Kadota at Barclays.

Antipodean currencies continued to ride the upward momentum created by the boost to risk sentiment triggered by the ECB's easing.

The Australian dollar traded at $0.9339, not far from a near three-week high of $0.9358 hit on Friday.

The New Zealand dollar was up 0.1 percent at $0.8505, having pulled away sharply from a three-month low of $0.8401 struck last week prior to the ECB meeting. (Editing by Richard Borsuk)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.