The Us dollar rose significantly against the Japanese yen, but with it, the greenback declined versus more profitable currencies during Friday’s trades after more positive US labor market report than it was expected. This report became good news about the world economy recovery. In these conditions, investors began to open positions on risky assets.

The euro slightly went up against the US dollar, but remained fears concerning Greece’s budget problems restrained the single common currency in narrow range versus US dollar. It happened because investors, worried about continual change of the situation in the Eurozone, forbore from purchases of the EUR/USD pair.

Positive attitude to risk led to substantial increase of the Australian and New Zealand dollars versus the low-profit US dollar. At the same time, the US currency strengthened against the Japanese yen, which is considered by investors as the best safe-haven currency.

In the second part of the North-American session, the Aussie climbed by more than 0.75% vs. the buck. At the same time, the kiwi gained by almost 1.5% against the American currency. The Canadian dollar also advanced versus the greenback.

Right after publication of more-than-expected positive US data, the euro dropped to intraday low vs. the US dollar, but managed to win back most of lost positions during volatile trades, which, as a rule, follow important data release. After, the euro traded higher.

Positive news that Greece, suffering fiscal problems, issued successfully government bonds on Thursday, likely, also support the euro.

German Chancellor Angela Merkel and Greek Prime Minister Georgios Papandreou declared at press conference on Friday that Greece did not ask Germany for help. However, Germany’s government showed solidarity with Greece’s government, which has begun to realize the plan on significant shrink of budget deficit. The performance of the representatives of these countries at press conference, which was held after negotiations, helped the euro to strengthen slightly.

Meanwhile, while the Eurozone suffer difficulties, steady improvement of the US data, which the US employment report, released on Friday, testifies to, points out that the Federal reserve System of the USA will rise the key interest rate a little bit earlier than it have been expected before release of the unexpected positive data.

In February, the US economy lost fewer jobs than it was expected, and unemployment remained at level of 9.7%, despite stormy weather on the Eastern cost in previous month. According to the government, such weather could temporarily do harm to jobs and working hours.

The Labor Department reported on Friday that jobs in non-farm sector decreased by 36000 in February after shrinking by 26000 in January. Economists, questioned by Dow Jones Newswires, were waiting for more significant fall by 75000.

The positive US data helped to accelerate the yen decline against the US dollar, which was up by more than 1.6% versus the Japanese currency in the later session in New York. During the Asian trading, the yen fell amid the information that the Bank of Japan can take additional measures on the easing of the monetary police which can lead to the lowering of the interest rates in Japan and decreasing of the assets attractiveness, denominated in yen.

The increase of the US dollar-yen pair was also caused by lowering of the basic rate for the yen at the interbank crediting market, which fell on Thursday lower than the corresponding US dollar rate for the first time within 6 months. This event, being awaited for the last several weeks, returned the status of the world cheapest currency of such a great demand.

Yours faithfully,

Vladimir Donin,

Analyst.