The US Dollar rallied last week, posting a 6-week high against the Japanese Yen, in response to a better than expected Non-Farm Payrolls report. According to the Labor Department, Non-Farm Payrolls increased by 175,000 for the month of February.
The Canadian Dollar posted its steepest decline against the US Dollar in over 2 weeks as a result of an unexpected drop in jobs for February, reviving speculation among investors that the central bank might cut interest rates in order to boost the Canadian economy. According to Statistics Canada, employment declined by 7,000 jobs. In the United States, Canada’s largest trading partner, there was a gain of 175,000 jobs during the same month.
The Canadian Dollar was last trading against the US Dollar at the level of 1.082, an increase of 0.89%.
The Pound hit a 1-month low against the euro after European Central Bank President Mario Draghi refrained from adding stimulus measures to the economy. On the other hand, better than expected data regarding British manufacturing, mortgage approvals, and services for February caused the Pound to hit a nearly 3-week high against the US Dollar.
The Pound was last trading against the US Dollar at the level of 1.6719, a decrease of 0.11%.
The positive economic data from the US bolstered WTI crude oil, which had dropped earlier in the week amid fears that the presence of Russian military in the Crimean Peninsula would disrupt energy supplies. Better than expected German industrial output also contributed to the rise of crude oil. According to the Energy Information Administration, US supplies of crude oil rose to 363.8 million barrels last week, the highest since December.
WTI Crude Oil was last trading at the level of 102.58, an increase of 1.00%.
The gains in US employment diminished the appeal of Gold as a safe haven asset, as a result of which the precious metal posted a 1-week low,
Gold has climbed by 11% so far this year amid signs of a faltering US economy and in response to the escalation of tensions in energy-rich Crimea.
Gold was last trading at the level of 1,339.45, a decrease of 0.82%.