• American focus: data on the U.S. labor market supported the euro

Market news

5 October 2012

American focus: data on the U.S. labor market supported the euro

 

The euro rose against the dollar and the yen against the U.S. improve statistics on the labor market. The unemployment rate unexpectedly fell to 7.8% in September, mainly due to the increase of employment of Americans to work part time, and off-farm employment increased by 114 thousand (the August value was revised to 142 million). The average duration of the week and hourly wage also rose last month.

With regard to regional statistics, the German factory orders for August fell short of expectations: the indicator fell by 4.8% y / y after the July decline of 4.6% and -4.3% forecast. In monthly terms orders fell by 1.3% vs. -0.5%. In the 2nd quarter of eurozone GDP fell by 0.2% after falling 0.3% in the previous quarter. This result coincided with analysts' forecasts. Spanish industrial output came out better than expected, although it remained in negative territory (-3.2% vs. prev. -5.4% And -5.5% of the forecast).

The yen earlier rose against major currencies after the Bank of Japan decided not to change the course of monetary policy. The Bank of Japan on Friday left its benchmark interest rate in the range of 0-0.1%. The total amount of incentive programs Bank of Japan kept at 80 trillion yen (just over $ 1 trillion), including a program of emergency loans to banks - 25 trillion yen asset repurchase program, expanded in the past month - 55 trillion yen. CB solutions line with expectations of economists.

The Canadian dollar was higher against the U.S. dollar after the rate of employment in Canada increased more than five times faster than economists' forecasts, with increased job full-time, starting from the retail sector and to construction. However, the unemployment rate also rose, with increased labor force. Employment rose by 52,100 in September, after rising by 34,300 in August, according to statistics office today. Unemployment rate increased to 7.4% from 7.3%, and the labor force increased by 72,600.


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