US Dollar Pares Gains as Employment Growth Slows
The US dollar pared its weekly gains after private payroll activity unexpectedly fell to the slowest pace in almost three years.
US payrolls rose at a much slower pace than forecasted, official Labor Department data showed Friday. Employers added 74,000 private payrolls in December, well below the median forecast of 197,000 collected by Bloomberg. The unemployment rate fell to 6.7 percent, the lowest since 2008, as more Americans exited the labour force.
The US dollar faced broad declines across the board, as investors quickly unloaded the American currency and speculated about the pace and timing of Federal Reserve stimulus cuts. The dollar index, which tracks the performance of the greenback against a basket of its major competitors, fell nearly half a percent to 80.63 after opening the week at 80.86.
The greenback broke three intraday supports against the Japanese yen, falling more than 0.8 percent to 1.0398 yen. Japan’s Leading Economic Index, which tracks the performance of the Japanese economy on the basis of 12 indices, rose from 109.8 to 110.8 in November, according to the nation’s Cabinet Office.
In Europe, the common currency soared 68 pips to 1.3672 US, erasing an earlier retreat sparked by disappointing Eurozone GDP estimates. Meanwhile, the British pound was unable to capitalize after UK industrial and manufacturing production fell below expectations in November. The GBPUSD pair tread water at 1.6479.
Down-under, the commodity currencies advanced briskly against the greenback. The New Zealand dollar gained 49 pips to 0.8301 US, while the Aussie edged up 99 pips to 0.8997 US.
The dollar’s best performance came against its northern counterpart, the Canadian loonie, which continued to nosedive after Statistics Canada reported the loss of 46,000 jobs in December. The USDCAD pair rallied to over four-year highs, advancing 45 pips to 1.0891.
Sorry. No data so far.