Euro rises according to US job data

The disappointing US labor market data has made investors on the currency and bond markets nervous. They parted with US Treasuries on Friday, among other things, and drove the yield on ten-year stocks to a one-year high of plus 1.801 percent. Their German counterparts could not escape this, with a return of minus 0.038 percent, just below their two-and-a-half-year high on Thursday.

The dollar also posted losses. In return, the common currency rose significantly and climbed above the $ 1.13 mark. The number of newly created jobs outside the US agriculture surprisingly fell in December to 199,000 from 210,000 in the previous month, while the analysts had expected an increase that was twice as high. These numbers are unlikely to please the US Federal Reserve, said Thomas Gitzel, VP Bank’s chief economist. “The pace of job creation should be faster.” At the same time, the higher salaries increase the risk of a wage-price spiral.

Supply concerns drove oil prices higher. The price for the North Sea variety Brent climbed by up to 1.2 percent to $ 82.98 a barrel. The US light oil WTI was also traded 1.3 percent higher. According to Commerzbank analyst Carsten Fritsch, supply concerns in particular are causing oil prices to rise further. The unrest in Kazakhstan raised fears that oil production there could also be affected, the expert said. According to Fritsch, Kazakhstan produces almost 1.7 million barrels of crude oil per day, making it one of the larger producing countries within the OPEC+. In addition to Kazakhstan, temporary production declines in Libya also fueled supply concerns, according to the expert.

Reference-www.sueddeutsche.de

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