US Dollar Loses Ground, Canadian Dollar Lower After Jobs Data

Market Reviews

The US dollar falls, as selling gathers momentum. US import prices rose less than expected in April, Data from the Labor Department said import prices rose 0.3% last month, while economists had forecast import prices rising 0.5% in April. On annual basis, import prices increased by 3.3%, matching March's gain.

The British pound rose after a sharp decline the day before on the decision of the Bank of England, which kept the interest rate at the previous level of 0.5%. Recovery of the GBP/USD pair was also supported by a decline in the US dollar, as yesterday's weak data on US inflation reduced the probability of an increase in the Fed's rate in 2018.

The euro moderately strengthens against the US dollar. Support for the single currency was also provided by the results of a study of the DIHK Chambers of Commerce and Industry of Germany, which showed that a record number of German companies believe that the economy in the external markets where they conduct business will improve, despite the growth of political and trade risks. The EUR/USD pair rose to weekly highs of $1.1950.

Canadian dollar fell after weaker-than-expected jobs data. But still, Canada’s currency remains the strongest one. Canadian employment market contracted -1.1k in April, much worse than expectation of 20.5k. Unemployment rate was unchanged at 5.8%, in line with forecast.