Slowing U.S. Job Growth Sends Dollar Lower
10 January 2020 - 09:11PM
RTTF2
The U.S. dollar declined against its major counterparts in the
European session on Friday, after a data showed that the nation's
job growth slowed more than expected in December following a
substantial acceleration in the previous month.
Data from the Labor Department showed that non-farm payroll
employment climbed by 145,000 jobs in December after spiking by a
revised 256,000 in November.
Economists had expected employment to increase by about 164,000
jobs compared to the jump of 266,000 jobs originally reported for
the previous month.
The unemployment rate came in at 3.5 percent in December,
unchanged from the previous month and in line with economist
estimates.
At 10:00 am ET, the Commerce Department is scheduled to release
its report on wholesale inventories in the month of November.
Wholesale inventories are expected to inch up by 0.1 percent.
Federal Reserve Vice Chairman Richard Clarida said at an
appearance before the Council on Foreign Relations in New York on
Thursday that the U.S. economy is in a good place and the central
bank isn't about to switch course.
Investors focused on positive developments on the trade front
after US President Donald Trump indicated that a signing ceremony
is scheduled for next week.
Meanwhile, the US House of Representatives passed a resolution
to prevent Trump from further military action against Iran.
The greenback showed mixed performance in the previous session,
by rising against the yen but holding steady against the franc and
the euro. Versus the pound, it trended lower.
After rising to a 2-week high of 0.9762 at 6:15 am ET, the
greenback pulled back against the franc, with the pair trading at
0.9744. At Thursday's close, the pair was valued at 0.9731. The
greenback is seen finding support around the 0.96 mark.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's unemployment rate remained stable in December.
The jobless rate held steady at a seasonally adjusted 2.3
percent in December, in line with expectations.
Following an advance to a fresh 3-week high of 109.69
immediately before the data, the greenback fell to 109.51 against
the Japanese yen. Next key support for the greenback is likely seen
around the 107.00 level.
Data from the Cabinet Office showed that Japan's leading index
fell to the lowest level in ten years in November.
The leading index, which measures the future economic activity,
fell to 90.9 in November from 91.6 in October. This was in line
with economists' expectations.
The greenback dropped to 1.1114 against the euro, from a new
2-week high of 1.1085 seen at 6:00 am ET. The pair had closed
Thursday's trading at 1.1106. Continuation of the greenback's
downtrend may lead it to a support around the 1.13 region.
The greenback neared the key 1.31 level against the pound,
falling to 1.3097. The pound-greenback pair had ended yesterday's
trading session at 1.3067. The greenback is poised to challenge
support around the 1.32 mark.
UK hiring conditions improved at the end of the year with an
increase in permanent job placement, according to a report on jobs
from IHS Markit.
According to Recruitment & Employment Confederation/KPMG
report, permanent staff appointments increased for the first time
in a year driven by higher business activity.
The USD/CAD pair dropped to 1.3029 after the data, compared to
yesterday's closing value of 1.3056. The greenback is likely to
face support around the 1.29 region, if it falls again.
Extending early fall, the greenback slipped to a 3-day low of
0.6892 against the aussie. The aussie-greenback pair was worth
0.6858 at Thursday's close. Should the greenback falls further, it
is likely to test support around the 0.71 region.
The greenback moved down to 0.6632 against the kiwi from
Thursday's closing value of 0.6615. The greenback is poised to
challenge support around the 0.68 mark.
The U.S. wholesale inventories for November are due out at 10:00
am ET.
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Feb 2024 to Mar 2024
Euro vs US Dollar (FX:EURUSD)
Forex Chart
From Mar 2023 to Mar 2024