* U.S. economy creates 266,000 jobs in November
* Jobs data supports Fed pausing rate cuts
* U.S. economy still slowing down, despite jobs - analyst
* Dollar on track for worst weekly loss since mid-October
(Adds comment, more details on jobs report, FX table, updates prices, changes byline, dateline; previous
LONDON)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 6 (Reuters) - The dollar rose on Friday after five straight days of losses, bolstered by
data showing the U.S. economy created way more jobs than expected in November, backing the Federal
Reserve's stance of keeping interest rates on hold after cutting them three times this year.
Gains in the dollar though were modest despite a robust jobs number. The greenback has been pummeled
all week due to a slew of weaker-than-expected U.S. data in manufacturing and services with investors
coming to grips with the reality that the economy is slowing down.
Friday's jobs report provided a respite from all the pessimism on the economy amid poor numbers and
persistent uncertainty on U.S.-China trade negotiations.
Data showed nonfarm payrolls increased by 266,000 jobs last month, with manufacturing recouping all
43,000 positions lost in October. Economists polled by Reuters had forecast payrolls rising by 180,000
jobs in November. Despite Friday's gains however, the dollar was still on track for its worst weekly percentage loss
since mid-October.
"No question today's jobs report is strong, but is it strong enough for people to change their views
about the economy?" said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
"I still think the U.S. economy is weakening and I don't think today's number is going to change
people's expectations for Q4 GDP (gross domestic product), which I think is headed toward 1%," he added.
Earlier in the week, U.S. data showed dismal figures on private payrolls and services activity, and a
weak manufacturing activity index and construction spending figures
In midmorning trading, the dollar index gained 0.3% to 97.674 .DXY . For the week, the dollar was
down 0.6%, its largest weekly loss in 1-1/2 months.
The dollar was up slightly against the yen at 108.84 yen JPY= , but still poised for its worst weekly
performance in nearly two months.
The euro, on the other hand, fell to 1.1074, down 0.3% EUR= .
Sterling cooled off a bit on Friday, down 0.3% at $1.3126 GBP=D3 and little changed against the euro
at 84.36 pence EURGBP=D3 . The pound, though, was close to a 2-1/2-year high as traders grew more
confident uncertainty over Brexit would end soon.
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Currency bid prices at 9:40AM (1440 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1073 $1.1102 -0.26% -3.45% +1.1109 +1.1069
Dollar/Yen JPY= 108.8000 108.7500 +0.05% -1.32% +108.9100 +108.5600
Euro/Yen EURJPY= 120.49 120.75 -0.22% -4.54% +120.7900 +120.4100
Dollar/Swiss CHF= 0.9899 0.9870 +0.29% +0.87% +0.9917 +0.9865
Sterling/Dollar GBP= 1.3128 1.3155 -0.21% +2.91% +1.3165 +1.3112
Dollar/Canadian CAD= 1.3249 1.3173 +0.58% -2.85% +1.3259 +1.3171
Australian/Doll AUD= 0.6844 0.6833 +0.16% -2.91% +0.6857 +0.6831
ar
Euro/Swiss EURCHF= 1.0964 1.0961 +0.03% -2.58% +1.0980 +1.0956
Euro/Sterling EURGBP= 0.8433 0.8438 -0.06% -6.13% +0.8467 +0.8433
NZ NZD= 0.6564 0.6541 +0.35% -2.28% +0.6573 +0.6542
Dollar/Dollar
Dollar/Norway NOK= 9.1187 9.1370 -0.20% +5.56% +9.1541 +9.1173
Euro/Norway EURNOK= 10.0999 10.1438 -0.43% +1.96% +10.1540 +10.0990
Dollar/Sweden SEK= 9.4672 9.4892 -0.55% +5.62% +9.5017 +9.4676
Euro/Sweden EURSEK= 10.4856 10.5435 -0.55% +2.16% +10.5457 +10.4860