News - Dollar gains on solid February U.S. jobs report

The dollar moved higher against most major currencies on Friday after data revealed the U.S. economy created more payrolls than expected in February.

In U.S. trading on Friday,EUR/USD was up 0.05% at 1.3867.

The Bureau of Labor Statistics reported earlier that the U.S. economy added 175,000 jobs in February, beating expectations for a 149,000 increase.

January's figure was revised up to 129,000 from 113,000.

The U.S. private sector added 162,000 jobs last month, exceeding expectations for a 154,000 rise. January's figure was revised up to 145,000 from 142,000.

The report also showed that the U.S. unemployment rate ticked up to 6.7% in February, from 6.6% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Meanwhile, data also showed that the U.S. trade deficit expanded to $39.1 billion in January, from $38.98 billion in December, whose figure was revised from a previously estimated deficit of $38.7 billion.

Analysts had expected the trade deficit to expand to $39.00 billion in January.

The data sent the dollar gaining, as the Federal Reserve has said it will pay close attention to data when deciding on how quickly it will dismantle its monthly bond-buying program.

Fed bond purchases, currently set at $65 billion a month, weaken the dollar by suppressing interest rates that aim to spur recovery by encouraging investing and hiring.

Still, dollar didn't soar, as many investors have already priced in expectations for the Fed to continue winding down stimulus measures as the year unfolds.

Meanwhile in the euro zone, official data earlier showed that German industrial production rose 0.8% in January, more than the expected 0.7% increase. Industrial production in December was revised up to a 0.1% gain from a previously estimated 0.6% fall.

Elsewhere, the dollar was up against the yen, with USD/JPY up 0.24% at 103.32, and down against the Swiss franc, with USD/CHF down 0.29% at 0.8778.

The greenback was up against the pound, with GBP/USD down 0.10% at 1.6722.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 1.04% at 1.1096, AUD/USD down 0.25% at 0.9067 and NZD/USD down 0.19% at 0.8460.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.09% at 79.74.

News - GBP/USD erases gains, pulls away from 3-week highs

Pound erases gains against dollar after U.S. data

The pound erased gains against the U.S. dollar on Friday, pulling away from three-week highs after the release of upbeat U.S. nonfarm payrolls data as well as a disappointing U.S. trade balance report.

GBP/USD pulled away from 1.6786, the pair's highest since February 17, to hit 1.6729 during U.S. morning trade, down 0.06%.

Cable was likely to find support at 1.6658, the low of March 5 and resistance at 1.6823, the high of February 17.

The U.S. Bureau of Labor Statistics said the economy added 175,000 jobs in February, compared to expectations for a 149,000 increase. January's figure was revised up to a 129,000 gain from a previously estimated 113,000 rise.

The U.S. private sector added 162,000 jobs last month, exceeding expectations for a 154,000 rise. January's figure was revised up to a 145,000 increase from a previously estimated 142,000 gain.

The report also showed that the U.S. unemployment rate ticked up to 6.7% in February, from 6.6% the previous month. Analysts had expected the unemployment rate to remain unchanged last month.

Meanwhile, data also showed that the U.S. trade deficit expanded to $39.1 billion in January, from $38.98 billion in December, whose figure was revised from a previously estimated deficit of $38.7 billion.

Analysts had expected the trade deficit to expand to $39.00 billion in January.

In the U.K., official data showed that consumer inflation expectations for the next 12 months slipped to 2.8% in the fourth quarter, from 3.6% in the previous quarter.

News - Forex - NZD/USD rises to over 4-month highs, eyes on ECB

The New Zealand dollar rose to over four-month highs against its U.S. counterpart on Thursday, while investors awaited the European Central Bank's monthly policy statement later in the trading session.

NZD/USD hit 0.8444 during late Asian trade, the pair's highest since October 24; the pair subsequently consolidated at 0.8442, adding 0.31%.
The pair was likely to find support at 0.8354, the low of March 4 and resistance at 0.8520, the high of October 23.

The ECB was expected to hold off cutting rates later Thursday but was expected to take other steps to tighten policy, amid ongoing concerns over the subdued inflation outlook for the euro area.

The kiwi was lower against the Australian dollar, with AUD/NZD edging up 0.11% to 1.0687.

Also Thursday, official data showed that retail sales in Australia rose 1.2% in January, beating expectations for a 0.5% gain. Retail sales in December were revised up to a 0.7% increase from a previously estimated 0.5% rise.

A separate report showed that Australia's trade surplus expanded to A$1.43 billion in January from A$0.59 billion in December, whose figure was revised up from a previously estimates surplus of A$0.47 billion.

Analysts had expected the trade surplus to narrow to A$0.27 billion in January.

Later in the day, the U.S. was to publish the weekly report on initial jobless claims and data on factory orders.

Kiwi hits more than 4-month highs vs. greenback