US Dollar Rose on Strong NFP Report

Market Reviews

The US dollar strengthened after the release of solid employment data. The non-farm employment report shows an increase of 200.000 in January, above the forecast of 180.000. The unemployment rate remained unchanged at 4.1%, as expected. The average hourly earnings also rose by 0.3% per month, according to consensus.

The euro weakened against the US dollar after strong growth in the previous session, amid weak data on producer prices in the euro area and renewed interest in the dollar. Producer prices rose by 2.2% in December compared to the same period last year, which is less than the growth of 2.8% in November. Economists had expected inflation to fall to 2.3%. The EUR/USD pair was trading at 1.2475.

The British pound fell to new session lows against the US dollar after the release of weak data on business activity in the construction sector in the UK. British construction activity expanded at the slowest pace in four months in January. The UK construction PMI unexpectedly fell to 50.2 in January from 52.2 in December. It was expected that it will grow to 52.8. The GBP/USD fell to the level of 1.4201.