USD/JPY dips on lackluster U.S. March jobs report
Published Apr 04, 2014 12:21PM ET
Dollar slides against yen on disappointing jobs report
Investing.com - The dollar slid against the yen on Friday after data revealed the U.S. economy picked up fewer jobs than expected in March.
In U.S. trading, USD/JPY was down 0.61% and trading at 103.29, up from a session low of 103.25 and off a high of 104.13.
The pair was expected to test support at 102.80, Monday's low, and resistance at 104.12, the earlier high.
In the U.S. earlier, the Department of Labor reported that the U.S. economy added 192,000 jobs in March, missing expectations for a 200,000 increase. February's figure was revised up to a 197,000 rise from a previously estimated 175,000 increase, while January's figure rose to 144,000 from 129,000.
The private sector added 192,000 jobs last month, below expectations for a 195,000 rise, while February's figure was revised up to 188,000 jobs added from a previously estimated 162,000 increase.
The report also showed that the U.S. unemployment rate remained unchanged at 6.7% last month compared to expectations for a 6.6% reading.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.69% at 141.59, and GBP/JPY trading down 0.70% at 171.26.
The euro continued to come under pressure due to expectations for the European Central Bank to loosen policy soon.
On Thursday, the ECB left its benchmark interest rate unchanged at a record-low 0.25%, held its marginal lending rate at 0.75% and left its deposit facility rate unchanged at zero.
ECB President Mario Draghi said monetary authorities did not exclude further monetary policy easing and reiterated the ECB's forward guidance that interest rates will remain at their current levels, or lower, for an extended period.
He added the ECB's governing council was "unanimous" in its commitment to using all unconventional instruments within its mandate to ward off deflationary pressures and added that the bank discussed the possibility of negative deposit rates.
Elsewhere on Friday, official data revealed that German factory orders rose 0.6% in February, beating expectations for a 0.1% gain. Factory orders in January were revised down to a 0.1% increase from a previously estimated 1.2% rise.
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Written By: Investing.com
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