Dollar gains broadly after robust U.S. jobs report before paring gain on rally in U.S. stocks

The greenback remained on the front foot in Asia and European morning following Federal Reserve Chairman Jerome Powell's rate remarks on Thursday and resumed its recent winning streak in Europe and New York morning after robust U.S. non-farm payrolls data before paring intra-day gains as intra-day rally in U.S. stocks triggered broad-based profit-taking. The Dow closed up 572 points or 1.85% at 31,496.

Reuters reported nonfarm payrolls surged 379,000 jobs last month after rising 166,000 in January, the Labor Department said on Friday. In December, payrolls fell for the first time in eight months. Economists polled by Reuters had forecast February payrolls increasing by 182,000 jobs.

Versus the Japanese yen, dollar continued its recent winning streak and rallied from 107.83 in Asian morning to 108.55 in Europe on usd's continued strength together with rise in U.S. Treasury yields. The pair then briefly edged up to an 8-1/2 month high at 108.64 at New York open after release of robust non-farm payrolls data before retreating to 1108.10 on profit-taking, price last traded at 108.39 near the close.

The single currency remained on the back foot after Thursday's selloff and fell from 1.1977 in Australia to 1.1915 in European morning on continued usd's strength before recovering to 1.1943. However, the pair weakened to a 3-month low of 1.1894 at New York open after release of robust U.S. non-farm payrolls data and then briefly rebounded to 1.1945 on short-covering and later moved broadly sideways in afternoon trading.

The British went through a volatile session. Although cable extended Thursday's selloff and fell to 1.3868 in Asian morning, the pair then recovered to 1.3906 but only to fall to 1.3789 in Europe on usd's broad-based strength. Price then edged lower to a near 3-week low of 1.3779 at New York open on upbeat U.S. jobs data and then staged a strong rebound to 1.3870 on short-covering and cross-buying in sterling. However, sterling quickly reterated and later swung sideways.

Data to be released this week :

Japan current account, trade balance, coincident index, leading indicator, Economy Watchers outlook, Economy Watchers current, China exports, imports, trade balance, Swiss unemployment rate, Germany industrial output, EU Sentix index, Canada leading index, housing starts, and U.S. wholesale inventory, wholesale sales on Monday.

New Zealand manufacturing sales, Japan all household spending, GDP deflator, GDP, machine tool orders, UK BRC retail sales, Australia NAB business conditions, NAB business confidence, France non-farm payrolls, Germany exports, imports, trade balance, current account, Italy industrial output, EU employment change, GDP and U.S. redbook on Tuesday.

New Zealand retail sales, Australia sentiment, China PPI, CPI, France industrial output, Italy producer price index, U.S. MBA mortgage applications, core CPI, CPI, real weekly earnings, Federal budget and Canada Bank of Canada interest rate decision on Wednesday.

New Zealand food price index, Japan corporate goods price index, Australia consumer inflation expectations, UK RICS housing price balance, EU ECB refinancing rate decision, ECB deposit rate decision, and U.S. initial jobless claims, continued jobless claims, JOLTS job openings on Thursday.

New Zealand manufacturing PMI, Germany CPI, HICP, UK GDP, industrial output, manufacturing output, construction output, trade balance, NIESR GDP estimate, EU industrial production, U.S. PPI, core PPI, University of Michigan sentiment, and Canada capacity utilization, employment change, unemployment rate, wholesale trade on Friday.