US data, commodity currencies in the foreground



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The dollar was held on Friday after US data on labor and inflation eased concerns over the world's largest economy, while falling oil prices weighed on currencies related to commodities such as Canadian and Australian dollars.

The dollar index against a basket of six major currencies remained stable at 97,166 after rising 0.25% the previous day.

The index would lose 0.25% a week, after stumbling earlier this week as Treasury yields fell following a mixed report in the US non-farm employment market in March.

Data released on Thursday shows that first-time claims for unemployment benefits in the US dropped to a 49-and-a-half-year low last week, signaling sustained labor market strength. Overall producer prices rose 0.6% in March, the largest increase since October.

The dollar hardly changed to 111.72 yen after gaining 0.6% overnight thanks to strong US data and rising US Treasury yields.

The advance of the greenback however stagnated before the threshold of 112.00 yen.

"Many market participants had adopted a bearish dollar outlook after US CPI figures were released earlier in the week, but they were forced to sharply hedge short positions as Thursday's data turned out. "said Takuya Kanda, General Manager of Gaitame. Research Institute Com.

"The rise has therefore lacked conviction and it remains to be seen whether the dollar will be able to support its rebound.The prospect of a rate cut by the Fed could have declined in light of the data, but the economic outlook is not still strong enough to support rising rates, expectations, "said Kanda.

The dollar was sinking on Wednesday after a contrasting report on domestic consumer prices reinforced the notion that US core inflation remained under control.

The pound remained stable at 1.3053 USD after plunging 0.25% the day before against a dollar generally firmer.

The volatility of the pound sterling plummeted after a midweek deal at an emergency summit of the European Union to postpone Britain 's October 31 exit, meaning that It would not collapse this week without a treaty to facilitate its adoption.

The Canadian dollar remained roughly stable at C $ 1.3385 per dollar, after declining 0.5% the day before, as crude oil prices fell from its five-month high.

The Australian dollar plunged 0.7% to 0.7117 dollars, extending losses compared to the previous day, while it had dropped 0.7%.

Lower copper prices and political uncertainty also weighed on the Australian.

Australian Prime Minister Scott Morrison announced Thursday the general election on May 18th.

The New Zealand dollar, also sensitive to changes in commodity prices, slipped to $ 0.6714, the lowest level since January 22.

The euro rose 0.1% to $ 1.1262 after losing 0.2% on Thursday. The single currency has increased about 0.4% this week.

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