© Reuters.  Dollar extends gains, boosted by U.S. wage growth© Reuters. Dollar extends gains, boosted by U.S. wage growth

Investing.com – The dollar pushed higher to a 10-week peak against other major counterparts on Friday, after data showed that the U.S. economy unexpectedly destroyed jobs last month, but that the unemployment rate declined and income rose more than anticipated.

Optimism over the strength of the economy did not waver despite the mixed U.S. employment report as markets seemed to solely focus on wage growth.

The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation.

The dollar was already broadly supported by hopes for an upcoming tax overhaul after the U.S. House of Representatives on Thursday approved a 2018 spending bill, which was seen as an important step to advance an eventual tax reform plan.

EUR/USD fell 0.24% to 1.1699, its lowest since August 17, as political tensions in Spain continued to weigh.

On Thursday, Spain’s Constitutional Court ordered the regional parliament of Catalonia to close on Monday, raising doubts over whether the region will be able to declare independence from Spain.

GBP/USD dropped 0.5% to trade at a four-week low of 1.3089 amid concerns over a possible leadership battle in the UK following threats by a former Conservative Party chairman claiming the support of 30 lawmakers to topple British Prime Minister Theresa May.

The yen and the Swiss franc extended earlier losses, with USD/JPY up 0.52% to 113.39 and with USD/CHF climbing 0.51% to 0.9835.

The Australian and New Zealand dollars were also lower, with AUD/USD declining 0.68% to 0.7744 and with NZD/USD retreating 0.76% to 0.7061.

Meanwhile, USD/CAD edged up 0.10% to 1.2579, the pair’s highest since August 31, after Statistics Canada said the number of employed people increased by 10,000 in September, confounding expectations for a rise of 14,500.

The unemployment rate remained unchanged at 6.2% last month, compared to expectations for an uptick to 6.3%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% at 94.01 by 08:55 a.m. ET (12:55 GMT), just off a 10-week high of 94.09 hit earlier in the session.

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