April 5, 2017 / 1:59 PM / 5 months ago

FOREX-Dollar advances after robust U.S. private sector jobs report

(Updates prices, adds comment, changes byline, dateline; previous LONDON)

* U.S. ADP report shows job gains in March

* Investor anxiety lingers ahead of Trump-Xi meeting

By Gertrude Chavez-Dreyfuss

NEW YORK, April 5 (Reuters) - The U.S. dollar gained against the yen on Wednesday for the first time in four days after a report showed U.S. private sector employers created more jobs than expected in March, suggesting a stable labor market and supporting forecasts for at least two more interest-rate hikes this year

The greenback also rose against the euro and Swiss franc while trimming losses against the pound after the employment data.

U.S. private employers added 263,000 jobs in March, more than their hirings in February and well above economists' expectations, a report by a payroll processor showed on Wednesday.

Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 187,000 jobs, with estimates ranging from 110,000 to 225,000.

"The ADP survey is clearly another indication that, despite the apparent slowdown in GDP growth in the first quarter, labor market conditions have remained unusually strong," said Capital Economics economist Andrew Hunter.

Before the data's release, the market has been rattled by political tension arising from an upcoming meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping.

Trump's consistently harsh rhetoric on China has raised concerns about Thursday's summit, as has speculation that the U.S. president will face challenges implementing his promised growth-boosting policies after his administration failed to pass a healthcare overhaul.

The market was also tested after North Korea test-fired a ballistic missile.

In midmorning trading, the dollar rose 0.6 percent to 111.39 yen.

The dollar index, which tracks the U.S. currency against a trade-weighted basket of six peers, was up slightly at 100.63 , but anxiety about the U.S.-China meeting and a risk-averse mood this week kept it from further gains.

The euro, meanwhile, slipped 0.1 percent to $1.0659

Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by Lisa Von Ahn

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