February 7, 2020 / 6:13 PM / 12 days ago

FOREX-Dollar climbs to four-month peak after robust U.S. jobs data

    * U.S. non-farm payrolls show 225,000 job gains
    * Euro hurt by poor German data, worst week since November 
    * Coronavirus fears keep sentiment fragile, yen gains
    * Death toll from virus reaches 637
    * GRAPHIC-World FX rates in 2019: tmsnrt.rs/2egbfVh

 (Recasts, adds new comment, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Feb 7 (Reuters) - The dollar rallied to a four-month high versus a basket of major
currencies on Friday, bolstered by a strong U.S. non-farm payrolls report that followed a spate of upbeat
economic reports this week, a scenario which should keep interest rates steady for now.
    The U.S. currency also hit a two-month high against sterling and the Canadian dollar, a six-week peak
versus the Swiss franc and a four-month high against the euro.
    However, the dollar fell against the safe-haven yen, but that was more related to fears about the
coronavirus outbreak in China.
    As the New York session progressed, the U.S. job report showed it had the bigger impact on currency
markets than the coronavirus.
    Data showed U.S. nonfarm payrolls increased by 225,000 jobs last month, with employment at
construction sites increasing by the most in a year amid milder-than-normal temperatures. Economists
polled by Reuters had forecast payrolls would rise by 160,000 jobs in January.
    "The data added to a resilient week for the U.S. economy and could buy the Fed more time along the
sidelines, a dollar-friendly situation," said Joe Manimbo, senior market analyst at Western Union Business
Solutions in Washington
    In midday trading, the dollar index, which measures the currency against a basket of rivals,
rose 0.2% to 98.687.
    The U.S. dollar was also up 0.3% against the Swiss franc at 0.9777 franc, gained 0.2% versus
the Canadian dollar to C$1.3307 CAD- and climbed 0.2% versus sterling, which fell to $1.2894 .
    The greenback, though, fell 0.2% against the yen to 109.79 yen on what analysts said was more a
safe-haven play for the Japanese currency.
    Brian Daingerfield, head of G10 FX strategy at Natwest Markets in Stamford, Connecticut, said the
coronavirus has injected a lot of uncertainty in the market, as investors wonder whether  January's
improvement in global economic data in can be sustained.
    The death toll in mainland China reached 637 on Friday, with a total of 31,211 cases, WHO chief Tedros
Adhanom Ghebreyesus said on Friday in Geneva. The virus has spread around the world, with 320 cases in 27
countries and regions outside mainland China, a Reuters tally of official statements shows.
    The euro fell to its lowest since October on Friday after German industrial output recorded its
biggest decline in a decade in December.
    The European single currency dropped to as low as $1.0946, and was last down 0.3%. It  has lost
1.2% since Monday, putting it on track for its worst week since November. 
    The offshore yuan was down 0.4% at 7.005 yuan per dollar, though it was still set for a small
gain this week thanks to stimulus from China's central bank and Beijing's announcement of tariff cuts on
U.S. imports.
    
    ========================================================
    Currency bid prices at 12:52 PM (1752 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0942        $1.0980     -0.35%         -2.38%      +1.0985     +1.0944
 Dollar/Yen       JPY=        109.7900       109.9900    -0.18%         +0.85%      +110.0200   +109.5400
 Euro/Yen         EURJPY=     120.15         120.78      -0.52%         -1.48%      +120.8000   +120.1300
 Dollar/Swiss     CHF=        0.9775         0.9744      +0.32%         +1.01%      +0.9781     +0.9740
 Sterling/Dollar  GBP=        1.2898         1.2928      -0.23%         -2.72%      +1.2958     +1.2895
 Dollar/Canadian  CAD=        1.3301         1.3284      +0.13%         +2.43%      +1.3319     +1.3280
 Australian/Doll  AUD=        0.6677         0.6730      -0.79%         -4.90%      +0.6736     +0.6663
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0699         1.0702      -0.03%         -1.41%      +1.0710     +1.0680
 Euro/Sterling    EURGBP=     0.8482         0.8492      -0.12%         +0.33%      +0.8497     +0.8462
 NZ               NZD=        0.6399         0.6456      -0.88%         -5.00%      +0.6463     +0.6401
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.2975         9.2171      +0.87%         +5.91%      +9.2983     +9.2168
 Euro/Norway      EURNOK=     10.1750        10.1228     +0.52%         +3.43%      +10.1974    +10.1184
 Dollar/Sweden    SEK=        9.6578         9.6221      +0.04%         +3.33%      +9.6615     +9.6083
 Euro/Sweden      EURSEK=     10.5709        10.5672     +0.04%         +0.97%      +10.5844    +10.5357
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Karen Brettell in New York; Editing by
Dan Grebler)
  
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