Asian stocks edged up and the dollar index slumped on Friday, as investors have confirmed that the US employment status has improved.
The euro remained near its overnight highs after the European Central Bank held steady as expected. Data on Thursday showed the number of Americans filing new claims for unemployment benefits slipped to a three-month low. This symbolized strength in of the labour market as well. The weekly claims data has no bearing on Friday's employment report, as it falls outside the reference period for the survey. Non farm payrolls are forecast to have increased by 150,000 jobs
The dollar index .DXY, which weighs the dollar against a basket of major currencies, was at 79.649, after skidding as low as 79.590. ‘Unless the increase falls below 100,000, the US Federal Reserve will likely stick to its stimulus reduction course when it meets in,’ stated Kathy Lien, Managing Director at BK Asset Management in New York.
The ECB's decision to stand pat pushed the euro to its highest level since December. It was steady in Asia at $1.3861, after rising as high as $1.38735 on the EBS trading platform in the wake of the central bank's announcement.
The euro also remained firm against its Japanese counterpart, buying 142.86 yen after touching 142.99 yen earlier on Friday, its highest since January 10. The yen also slipped against the greenback to its lowest levels since January, with the dollar buying 103.06 yen, inching away from a one-month low of 101.20 hit on Monday.
