The U.S. exchange rate dropped to the lowest level against the Euro since November 2011 after reports showed that hiring in the U.S. climbed more than predicted last month. Friday’s data indicated that payrolls for the world’s biggest economy rose by 157,000, suggesting that the job market is still on the path to recovery. The greenback’s decline took place two days after the Federal Reserve announced it would continue purchasing bonds in order to bolster economic growth. The U.S. Dollar remained weak against the shared currency following news that manufacturing in the Euro-zone contracted less than predicted. And it remained virtually unchanged as a surprising increase in U.S. unemployment dampened hopes that the Federal Reserve will put an end to monetary stimulus.
The British Pound plunged the most in over two years against the Euro subsequent to the release of industry data confirming that manufacturing in the U.K. expanded less in the first month of 2013 than economists had anticipated, thereby reducing demand for the Sterling. The Chartered Institute of Purchasing and Supply indicated that manufacturing output dipped from a revised 51.2 in December to 50.8 last month.
Other Forex news revealed that the Canadian Dollar declined against most of its trading counterparts in anticipation of this week’s economic releases which are expected to show that unemployment increased in the world’s 11th largest economy. The Loonie reversed gains obtained the day before when the Canadian government announced that the economy expanded quicker than expected in November.