The U.S. dollar climbed against its most major opponents in the European session on Friday, trimming its recent losses, as the U.S. jobs data showed that the jobless rate fell to a 49-year low in September.
Data from the Labor Department showed that the unemployment rate fell to 3.7 percent in September from 3.9 percent in August. The unemployment rate had been expected to edge down to 3.8 percent.
With the bigger than expected decrease, the unemployment rate fell to its lowest level since December, 1969.
The non-farm payroll employment climbed by 134,000 jobs in September, while economists had expected an increase of about 185,000 jobs.
However, the report also showed a significant upward revision to the pace of job growth in August, with employment spiking by 270,000 jobs compared to the originally reported jump of 201,000 jobs.
Data from the Commerce Department showed that the U.S. trade deficit widened in August, reflecting an increase in imports and a decrease in exports.
The Commerce Department said the trade deficit widened to $53.2 billion in August from a revised $50.0 billion in July.
Economists had expected the trade deficit to widen to $53.5 billion from the $50.1 billion originally reported for the previous month.
The U.S. treasury yields rose following the data, with the benchmark yield on 10-year note rising by 3.2 percent, while that of 2-year equivalent was higher by 2.90 percent.
The currency traded mixed against its major counterparts in the Asian session. While it rose against the franc and the euro, it held steady against the yen and the pound.
The greenback appreciated to 1.1484 against the euro, after having fallen to 1.1531 in the immediate aftermath of the data. If the greenback extends rise, 1.13 is possibly seen as its next resistance level.
Figures from Destatis showed that Germany’s factory orders rebounded on foreign demand in August.
Factory orders grew by more-than-expected 2 percent on month in August, reversing a 0.9 percent drop in July. Orders were forecast to rise 0.8 percent.
The greenback spiked up to 0.9955 against the franc, its strongest since August 20. This follows a low of 0.9914 hit at 7:45 pm ET. On the upside, 1.01 is possibly seen as the next resistance for the greenback.
The greenback rebounded to 114.08 against the yen, from a low of 113.76 touched immediately after the release of the data. The greenback is seen finding resistance around the 115.00 mark.
Preliminary data from the Cabinet Office showed that Japan’s leading index strengthened more-than-expected in August.
The leading index, which measures the future economic activity, rose to 104.4 in August from 103.9 in July. The reading was forecast to rise moderately to 104.2.
The greenback climbed to a weekly high of 1.2955 against the loonie, 2-1/2-year highs of 0.7053 against the aussie and 0.6450 against the kiwi, from its early lows of 1.2887, 0.7086 and 0.6486, respectively. The next possible resistance for the greenback is seen around 1.31 against the loonie, 0.69 against the aussie and 0.63 against the kiwi.
On the flip side, the greenback dropped to a 4-day low of 1.3089 against the pound, reversing from a low of 1.3003 hit at 1:30 am ET. The greenback is poised to target support around the 1.32 level.
Data from the Lloyds bank subsidiary Halifax and IHS Markit showed that UK house prices dropped unexpectedly in September.
House prices decreased 1.4 percent in September from August, confounding expectations for an increase of 0.2 percent. This was also much bigger than the 0.2 percent drop posted in August.
The U.S. consumer credit for August is slated for release at 3:00 pm ET.
At 12:40 pm ET, Federal Reserve Bank of Atlanta President Raphael Bostic speaks at the Financial Literacy and Economic Education Conference in Atlanta.