Friday, December 02, 2022

US dollar slips on US jobs data

NEW YORK (ANTARA) – The US dollar slipped against a basket of other major currencies in trading late Friday as market participants digested US employment data for August 2022.

dollar index, which measures Note Against its six major rivals, it fell 0.15 per cent to 109.5320. However, aggressive interest rate hikes by the Federal Reserve will continue to support the dollar. The futures market is pricing in a 75 percent probability the Fed will raise interest rates by 75 basis points at its September policy meeting.

“Looking at the experience of the past month and that of Fed Chair Jerome Powell” flamboyant Last Friday (8/26/2022), we suspected that even a slightly softer August jobs report would be enough to undercut these Fed or dollar forecasts,” analysts at ING said in a note.

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Expectations of further Fed rate hikes were most sharply reflected in the US dollar and Japanese yen pairs, as traders increasingly saw the interest rate gap widening.

In late New York trade, the euro was up from US$0.9947 in the previous session to US$0.9968, and the British pound declined to US$1.1513 from US$1.1539 in the previous session. The Australian dollar rose from the US dollar 0.6784 to 0.6816 US dollar.

The US dollar bought 140.12 JPY, down from 140.20 JPY in the previous session. The US dollar fell from 0.9822 Swiss franc to 0.9803 Swiss franc, and fell from 1.3165 Canadian dollar to 1.3124 Canadian dollar.

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The US Labor Department reported Friday that US employers added 315,000 jobs in August amid a tight labor market, with the unemployment rate rising to 3.7 percent.

In a speech at the Jackson Hole Symposium on Central Banks last week, Federal Reserve Chairman Jerome Powell indicated that “some softening” in labor market conditions would be needed to bring inflation toward the Fed’s 2.0 percent target.

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