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Solid U.S. Jobs Data Lifts Dollar

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The U.S. dollar spiked higher against its most major counterparts in the European session on Friday, as the nation's job growth exceeded forecasts in October, signaling a continued improvement in the labor market as virus cases dropped.

Data from the Labor Department showed that U.S. employment increased more than expected in the month of October.

The report said non-farm payroll employment surged up by 531,000 jobs in October after climbing by an upwardly revised 312,000 jobs in September.

Economists had expected employment to jump by 425,000 jobs compared to the addition of 194,000 jobs originally reported for the previous month.

With employment increasing by more than expected, the unemployment rate fell to 4.6 percent in October from 4.8 percent in September, hitting its lowest level since March of 2020. The unemployment rate was expected to edge down to 4.7 percent.

The House of Representatives is expected to vote on President Joe Biden's $1.75 trillion economic package and an infrastructure measure later today.

The White House said the infrastructure deal would create thousands of jobs by providing funds for broadband, roads, bridges and other projects.

The currency showed mixed trading against its major opponents in the Asian session. While it rose against the franc and the euro, it was steady against the pound. Versus the yen, it fell.

The greenback appreciated to a 1-week high of 0.9176 versus the franc, from Thursday's close of 0.9124. Should the greenback continues its uptrend, 0.93 is possibly seen as its next resistance level.

The greenback added 0.4 percent to hit over a 1-year high of 1.1513 against the euro. The pair was worth 1.1554 when it closed deals on Thursday. Further rally may take the greenback to a resistance around the 1.13 area.

Data from Destatis showed that German industrial production declined unexpectedly in September.

Industrial production dropped 1.1 percent on a monthly basis, but slower than the revised 3.5 percent decline seen in August. Economists had forecast a monthly growth of 1 percent.

The greenback held firm against the pound, after touching a fresh 5-week high of 1.3424 at 6:45 am ET. The pound-greenback pair had ended yesterday's trading session at 1.3498.

Survey data from the Lloyds Bank subsidiary Halifax showed that UK house prices grew at the fastest pace in four months in October, taking the average property price up to an all-time high.

House prices increased 0.9 percent on a monthly basis in October, slower than the 1.7 percent rise in September.

The greenback jumped to more than a 3-week high of 0.7360 against the aussie following the data, but it has since pulled back to 0.7400. The greenback was worth 0.7398 per aussie at Thursday's New York session close.

In contrast, the greenback fell to a 3-day low of 113.50 against the yen, from a high of 114.03 seen at 8:30 am ET. The pair had closed Thursday's deals at 113.74. Immediate support for the greenback is likely located around the 110 level.

Data from the Ministry of Internal Affairs and Communications showed that Japan household spending fell 1.9 percent on year in September - coming in at 265,306 yen.

That beat forecasts for a drop of 3.9 percent following the 3.0 percent decline in August.

The greenback edged down to 1.2441 against the loonie, following more than a 3-week high of 1.2480 hit at 6 am ET. The greenback was trading at 1.2457 against the loonie at yesterday's close. The greenback is likely to find support around the 1.22 region.

After rising to more than a 2-week high of 0.7072 at 6:55 am ET, the greenback eased off to 0.7103 against the kiwi. Next key support for the greenback is likely seen around the 0.72 level.

U.S. consumer credit for September will be published in the New York session.

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