The dollar weakened against its peers on Friday following the release of the US non-farm payroll report which highlighted a lack in salary growth causing the market to predict a rate increase by the Fed to be later than previously expected. The Labor Department released figures which showed that the US job market increased by 252,000 jobs in December and the unemployment rate dropped to its lowest level in over 6 years to 5.6% in November. However data revealed that average earnings declined by 0.2% in December while an increase of 0.2% was forecast which triggered dollar profit taking.

The euro strengthened against the dollar coming off its 9 year low set on Thursday but still finished up the week down marking 4 consecutive weeks of decline. Data released out of the euro zone revealed that German and French industrial output decreased in November. Data intensified expectations that The European Central Bank will not hold back with stimulus measures possibly being introduced as soon as its next meeting set for January 22.

The pound strengthened against the dollar on the back of US jobs data coming off its 18 month low set on Thursday. Data released out of the UK revealed that UK industrial production inched down 0.1% in November while an increase of 0.2% was forecast. Other figures revealed that the UK trade deficit decreased from 9.84 billion pounds in October to 8.85 billion in November.

The yen strengthened against the dollar on the back of the US jobs report following an initial move lower. The pair closed out the trading week down 1.6%. On Tuesday Japan is set to release figures on its current account balance.

Commodity associated currencies such as the Australian, New Zealand and Canadian dollars were all mixed against the dollar while still trading near multi-year lows following tanking oil prices despite signs of now stabilizing. The Canadian dollar weakened to more than 5 year lows against the dollar following figures which revealed that Canada’s job market lost 4,300 jobs in December following a decline of 10,700 for the previous month. Analysts predicted an increase of 15,000 jobs.

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