Daily Afternoon Report 04.12.2015

The dollar remained broadly higher against the other major currencies on Friday, after data showing that the U.S. economy added more jobs than expected last month fuelled further expectations for an upcoming rate hike by the Federal Reserve.

The Labor Department said the U.S. economy added 211.000 jobs in November, beating expectations for an increase of 200.000. The U.S. created 298.000 jobs in October, whose figure was revised from a previously estimated 271.000.

The U.S. unemployment rate remained unchanged at 5.0% last month, in line with expectations.

Average hourly earnings rose 0.2% in November, in line with market expectations.

A separate report showed that the U.S. trade deficit widened to $43.89 billion in October from a revised deficit of $42.46 billion the previous month. Analysts had expected the trade deficit to narrow to $40.50 billion in October

The single currency had rallied after European Central Bank President Mario Draghi said on Thursday that the pace of the quantitative easing program is to remain unchanged at €60 billion, disappointing expectations that the central bank would speed up its bond-buying scheme.

The comments came after the ECB’s governing council lowered the deposit facility rate to -0.3% from -0.20%, in line with market expectations.

The ECB’s main refinancing rate was left unchanged at a record-low 0.05%, in line with market expectations.

Earlier Friday, data showed that German factory orders increased by 1.8% in October, beating expectations for a 1.2% rise. Factory orders fell 0.7% in September, whose figure was revised from a previously estimated 1.7% decline.

The Australian Bureau of Statistics reported on Friday that retail sales rose 0.5% in October, in line with expectations and after a 0.4% gain the previous month.

Statistics Canada reported on Friday that the number of employed people declined by 35.700 in November, compared to expectations for a 10.000 drop and after an increase of 44.400 the previous month.

Canada’s unemployment rate ticked up to 7.1% last month from 7.0% in October. Analysts had expected the unemployment rate to remain unchanged in November.

Data also showed that Canada’s trade deficit widened to C$2.76 billion in October from a revised deficit of C$2.32 billion the previous month. Analysts had expected the trade deficit to narrow to C$1.70 billion in October.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.47% at 98.30, off Thursday’s one-month trough of 97.60.