* U.S. private sector job losses hit more than 20 mln in April
* Euro zone, UK manufacturing data shows steep contraction
* Japanese yen rises to 7-week high vs U.S. dollar
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Adds new analyst comments, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, May 6 (Reuters) - The safe-haven yen and dollar rose on Wednesday, as investors sought
refuge in these currencies in the wake of dire global economic numbers.
The yen rose to a seven-week high against the dollar and a 3-1/2-peak versus the euro. The dollar,
meanwhile, advanced to its highest in more than a week against a basket of major currencies.
Manufacturing data in the euro zone and the UK painted a bleak picture, undermining the single
European currency and sterling.
U.S. private payrolls data also showed a record of more than 20 million jobs lost in April based on
the ADP National Employment Report, but the dollar held gains. "Safe havens are likely to hold the upper hand as many brace for the impact of the late week jobs
data," said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.
The ADP report sets the stage for Friday's non-farm payrolls report, with a consensus forecast of 22
million jobs and an unemployment rate of 16%, according to a Reuters poll.
"Our advice: prepare for the worst, as we are likely to see by far the biggest monthly decline in
payrolls on record," said Payden & Rygel's chief economist Jeffrey Cleveland.
"Unlike 2008, or the 1930s for that matter, when most of the job losses were permanent, requiring a
painful, slow process of reallocating labor to new areas, if the recent rise in unemployment is temporary,
it's possible the economy will rebound more quickly," he added.
In Europe, euro zone business activity almost ground to a halt last month and retail sales in the euro
zone also suffered their largest decline on record in March amid government-imposed lockdowns
In the UK, British construction suffered its sharpest decline on record, more than twice as large as
the previous month, even though general construction work was not ordered by the government to stop.
In afternoon trading, the dollar index rose 0.3% to 100.07 =USD , climbing earlier to a more than
one-week high of 100.200.
Against the yen, the dollar fell 0.4% to 106.10 yen JPY=EBS , after dropping to a seven-week low of
106.06 yen.
The euro fell 0.7% to 114.60 yen EURJPY=EBS , earlier plunging to 114.43 yen, the lowest since
November 2016.
The euro was down 0.3% against the dollar at $1.0801 EUR=EBS , hitting a nearly two-week low earlier.
It resumed its decline after a court decision challenged German participation in the euro zone's stimulus
programme.
Germany's highest court on Tuesday gave the European Central Bank three months to justify purchases
under its bond-buying programme, or lose the Bundesbank's participation in one of its main stimulus
schemes.
The fact that speculators are now long the euro also undermines its current levels, analysts said.
Leveraged funds have trimmed their long positions on the euro, but the number of longs is still close to
their two-year highs. EURNETUSD=
Currency bid prices at 3:07 PM (1907 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.0801 $1.0838 -0.34% -3.65% +1.0847 +1.0783
Dollar/Yen JPY= 106.0700 106.5800 -0.48% -2.56% +106.6200 +105.9900
Euro/Yen EURJPY= 114.57 115.46 -0.77% -6.05% +115.5800 +114.4400
Dollar/Swiss CHF= 0.9746 0.9725 +0.22% +0.70% +0.9758 +0.9722
Sterling/Dollar GBP= 1.2343 1.2434 -0.73% -6.91% +1.2449 +1.2336
Dollar/Canadian CAD= 1.4118 1.4045 +0.52% +8.68% +1.4157 +1.4023
Australian/Doll AUD= 0.6417 0.6430 -0.20% -8.60% +0.6452 +0.6407
ar
Euro/Swiss EURCHF= 1.0529 1.0542 -0.12% -2.98% +1.0547 +1.0522
Euro/Sterling EURGBP= 0.8750 0.8714 +0.41% +3.50% +0.8756 +0.8699
NZ NZD= 0.6018 0.6050 -0.53% -10.66% +0.6072 +0.6013
Dollar/Dollar
Dollar/Norway NOK= 10.2564 10.2619 -0.05% +16.83% +10.3165 +10.2385
Euro/Norway EURNOK= 11.0837 11.1249 -0.37% +12.66% +11.1489 +11.0795
Dollar/Sweden SEK= 9.8396 9.8374 -0.27% +5.23% +9.8750 +9.8066
Euro/Sweden EURSEK= 10.6296 10.6586 -0.27% +1.55% +10.6647 +10.6200
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Euro falls yen rises on fears of economic glut IMAGE https://tmsnrt.rs/2SG7BGl
Leverages funds remain broadly long euro IMAGE https://tmsnrt.rs/2xDxnn8
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