Dollar Nurses Losses Following Disappointing US Jobs Data, Euro Gains Held In Check

Frankfurt (Apr 7)   Dollar lost ground against major counterparts in Europe on Monday including the Japanese yen and the euro, after Friday`s United State nonfarm payrolls report fell short of high expectations.

The US dollar continues to fall in midday trading, posting losses into a second day to trade at 80.51 after opening at 80.56. The USDIX rose to a session high at 80.59 and session low at 80.48.

U.S. nonfarm payrolls data showed the U.S. added 192,000 jobs last month, well short off analysts` median forecast of 200,000 jobs, sparking some uncertainty about the Fed’s monetary outlook.

The Japanese yen climbed against other major currencies, including the greenback and the single currency on hopes that data scheduled for early Tuesday might show Japan`s current account balance probably swung back to a surplus for the first time in five months in February.

The yean declined to more than 2-month low last week amid expectations the Bank of Japan Governor Haruhiko Kuroda might come under pressure to take more easing action to support the economy tomorrow after the country hiked its sales tax this month.

The USDJPY pair is currently trading at ¥103.201 down by 0.09 percent from a day opening at ¥103.258. The pair so far hit an intraday high at ¥103.384 and low ¥102.990.

A weaker dollar sent the EURUSD above 1.37, trading at $1.37143 after opening $1.376952. However, the euro’s gains might be limited amid caution over the prospect of further stimulus measures by the European Central Bank.

The euro took a hit last week after ECB’s chief Mario Draghi indicated that unconventional monetary policy instruments may be necessary to avert the risk of ongoing low inflation in the Eurozone.

Investors will be closely watching a raft of ECB speakers this week, as they flesh out what markets understand about the discussions at April’s meeting in Frankfurt.