2019.12.0620:53:00UTC+00Dollar Rises On Strong Jobs Data

After exhibiting some weakness early on in the day, the U.S. dollar moved higher on Friday, riding on strong U.S. monthly jobs data and amid optimism the U.S. and China will agree on a phase one trade deal before the next hike in tariffs on Chinese imports come into effect later this month.

The dollar index, which eased to 97.36 at the start, rallied to 97.84 by mid morning, and was later seen at 97.70, up nearly 0.3% from previous close.

Against the euro, the dollar strengthened to 1.1061, gaining about 0.4%, from previous close of $1.1103.

Against pound sterling, the dollar recovered to 1.3133 from a low of 1.3167.

The Japanese yen strengthened against the dollar, rising to 108.56 a dollar, after having weakened to 108.91 yen a dollar in early trades.

The dollar was down slightly against the Aussie with the AUD-USD pair trading at 0.6841.

Against Swiss franc, the dollar rose to 09899, up 0.27% from previous close, while against the Loonie, it rose to 1.3257, adding more than 0.6%.

In Canadian economic news, data from Statistics Canada said the Canadian economy lost 71,200 jobs in November of 2019 after shedding 1,800 jobs in the previous month.

The unemployment rate in Canada rose to 5.9% in November 2019 from 5.5% in the previous month and compared with market expectations of 5.5%.

In the U.S., according to the data from the Labor Department, U.S. non-farm payroll employment surged by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October.

Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month.

The unemployment rate edged down to 3.5% in November from 3.6% in October. The unemployment rate was expected to remain unchanged.

The buoyant jobs data is likely to prompt the Federal Reserve to hold rates unchanged when it meets to take a call on interest rates next week.

Meanwhile, according to preliminary data released by the University of Michigan, U.S. consumer sentiment showed a much bigger than expected improvement in the month of December, with the index climbing to 99.2 from the final November reading of 96.8. Economists had expected the index to inch up to 97.0.

With the much bigger than expected increase, the consumer sentiment index reached its highest level since hitting 100.0 in May.

In trade news, China said it would waive import tariffs for some soybeans and pork shipments from the United States.

The tariff waivers were based on applications by individual firms for U.S. soybeans and pork imports, the finance ministry said in a statement, but didn't not specify the quantities involved.

The waiver of 25% tariffs comes two weeks before a critical decision on the fate of the December 15 tariff increases.

On Thursday, U.S. President Donald Trump said that trade talks with China were "moving right along", and that the two sides are having very major discussions".

Asked whether he will go ahead with additional tariffs in less than two weeks, Trump said, "We're not discussing that."

Meanwhile, U.S. Treasury Secretary Steven Mnuchin told reporters that trade talks with China are on track, but the United States is not bound to a deadline.