* U.S. job growth decelerates in July
* Dollar rebounds after hitting 2-year low on Thursday
(Updates to after U.S. jobs data, changes byline, dateline;
previous LONDON)
By Caroline Valetkevitch
NEW YORK, Aug 7 (Reuters) - The U.S. dollar bounced on
Friday after U.S. job growth for July surpassed low expectations
but still showed a sharp decline from June, while investors kept
an eye on ongoing stimulus talks in Washington.
The U.S. Labor Department's report showed nonfarm payrolls
increased by 1.76 million in July. While that was better than
the 1.6 million economists surveyed by Reuters had forecast, it
was still sharply lower than the record 4.8 million in June.
The dollar index, which measures the dollar against a basket
of currencies, rose in the wake of the report and hit its
highest in three days. It was last up 0.6% at 93.419 =USD .
"U.S. labor market report has painted a strong picture of
the jobs recovery... However it is clear that the recovery
remains fragile and depends significantly on the progress of the
virus," said Michael Brown, senior analyst at payments firm
Caxton, in London.
"The dollar has, in reaction, found a bid in the afternoon
session, with the market having shrugged its shoulders at the
payrolls report, and instead focusing on the continued stalemate
over a fifth stimulus bill, with today's solid jobs numbers
potentially reducing the feeling of urgency to act among some
lawmakers," he said.
U.S. Republicans and Democrats have so far failed to reach
an agreement on the cost of fiscal stimulus measures that many
investors say is necessary to prevent the economy from losing
more momentum. The U.S. dollar index's =USD rebound on Friday may not
signal an end to its recent weakness, some analysts said.
"One month's survey isn't going to be enough to meaningfully
arrest the fall in the dollar," said Joe Manimbo, senior market
analyst at Western Union Business Solutions in Washington.
The euro has retreated from recent highs, and was last down
0.8% at $1.1785 EUR=EBS , while the British pound also fell
0.8% to $1.3042 GBP=D3 .
The risk-sensitive Australian dollar fell, hurt by concerns
about worsening U.S.-Chinese relations and the Reserve Bank of
Australia's downbeat assessment of the local economy. It was
last down 0.8% at 0.7175 AUD=D3 .
President Donald Trump on Thursday issued an executive order
banning transactions with ByteDance, the Chinese company that
owns the video-sharing app TikTok, and with Tencent Holdings Ltd
0700.HK , which owns the WeChat messaging app.
The dollar is at its most oversold level in over 40 years,
investment bank Morgan Stanley said on Friday, adding it had now
shifted from its dollar-bearish stance and turned "tactically
neutral" on the U.S. currency. ========================================================
Currency bid prices at 10:56AM (1456 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR= $1.1785 $1.1875 -0.76% +5.13% +1.1883 +1.1756
Dollar/Yen JPY= 105.8900 105.5400 +0.33% -2.73% +106.0500 +105.4900
Euro/Yen EURJPY= 124.80 125.34 -0.43% +2.34% +125.3900 +124.4700
Dollar/Swiss CHF= 0.9130 0.9097 +0.36% -5.66% +0.9157 +0.9093
Sterling/Dollar GBP= 1.3042 1.3146 -0.79% -1.64% +1.3153 +1.3011
Dollar/Canadian CAD= 1.3380 1.3304 +0.57% +3.03% +1.3398 +1.3284
Australian/Doll AUD= 0.7175 0.7233 -0.80% +2.19% +0.7243 +0.7159
ar
Euro/Swiss EURCHF= 1.0761 1.0803 -0.39% -0.84% +1.0812 +1.0760
Euro/Sterling EURGBP= 0.9036 0.9034 +0.02% +6.87% +0.9043 +0.9017
NZ NZD= 0.6616 0.6686 -1.05% -1.78% +0.6690 +0.6605
Dollar/Dollar
Dollar/Norway NOK= 9.0527 8.9681 +0.94% +3.12% +9.0774 +8.9629
Euro/Norway EURNOK= 10.6700 10.6476 +0.21% +8.45% +10.6935 +10.6210
Dollar/Sweden SEK= 8.7429 8.6845 -0.14% -6.47% +8.7754 +8.6767
Euro/Sweden EURSEK= 10.3063 10.3209 -0.14% -1.56% +10.3297 +10.3010
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GRAPHIC: U.S. dollar 2020 performance https://tmsnrt.rs/2XBYQ2m
GRAPHIC: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
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