Dollar takes a beating after jobs and growth data

Canadian dollar – Crude oil is only marginally in the black on Thursday, yet this follows a couple of days of stronger rebounds that have lifted the price of a barrel of crude to $101.50 heading in to the start of U.S. driving season this weekend. However, the better tone to risk-taking met with a dip in the fortunes of the U.S. labor market and failed to encouraging dealers to put back growth-sensitive plays into their portfolios. The Canadian dollar weakened as a result and today buys $1.0205 U.S. cents.

Aussie dollar – The Aussie moved in the opposite direction partly due to rebounding Asian stocks but moreover on account of a greater than hoped for increase in capital expenditure during the first quarter, where investment projects accelerated by a 3.4% clip. The Aussie was dragged higher by rising commodity prices after a 1.6% gain for the CRB index midweek, while building on that theme, RBA Deputy Governor Ric Battellino noted that the health of the Aussie was a reflection of “strong global growth” as demand for Australian natural resources remained firm. The Aussie is close to its session high and recently traded at $1.0600 U.S. cents.

Japanese yen –Shortly after the dull U.S. GDP and initial claims data the yen surged versus the dollar reversing weakness earlier in the session from ¥82.02 to ¥81.15. Selling pressure mounted after the dollar broke through the daily low but escalated to drive the pair through even Monday’s low for dollar/yen.

Andrew Wilkinson is a Senior Market Analyst at Interactive Brokers LLC

Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Interactive Brokers LLC nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither IB nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.

About the Author
Andrew Wilkinson

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school. Andrew re-joins Interactive Brokers following a two-year stretch at a major Wall Street broker-dealer as their Chief Economic Strategist. His coverage of stocks, options, futures, forex and bonds regularly surfaces in global media, and over the last several years Andrew has made many TV appearances on Bloomberg, BBC, CNBC and BNN and Yahoo Finance.

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