Investing.com - Financial Markets Worldwide
⚠ NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

FOREX-Dollar falls to 2-1/2 month low after U.S. jobs data disappoints

Published 06/07/2019, 09:22 PM
Updated 06/07/2019, 09:30 PM
© Reuters. FOREX-Dollar falls to 2-1/2 month low after U.S. jobs data disappoints
EUR/USD
-
USD/JPY
-
USD/CAD
-
DXY
-

(Adds broader currency market reactions, report details,
analyst quotes, rate cut expectations)
By Kate Duguid
NEW YORK, June 7 (Reuters) - The U.S. dollar index .DXY
fell on Friday morning to its lowest since March 26 after the
Labor Department's employment report showed that job growth
slowed sharply in May and wages rose less than expected.
The weak data suggest that the loss of momentum in economic
activity has spread to the labor market, which could increase
expectations that the Federal Reserve will cut interest rates
this year. Rising expectations of a cut have pulled the dollar
1.2% lower this week.
"It's a soft report. It's a soft enough report that a June
rate cut should probably be on the table for discussion," said
Greg Anderson, global head of foreign exchange strategy at BMO
Capital Markets in New York.
Nonfarm payrolls increased by 75,000 jobs last month,
falling below the roughly 100,000 needed per month to keep up
with growth in the working-age population. "Unlike a lot of the reports we've seen where the headline
is strong and the details are soft, or vice versa, this is just
soft. Headline is soft, details are soft," said Anderson, noting
that the average duration of a spell of unemployment rose
substantially and the employed share of the population fell.
Expectations for a rate cut in June jumped to 30.8% on
Friday from 16.7% the day prior, according to CME Group's
FedWatch tool. The market is now pricing in a 28.4% chance of
two rate cuts and a 36.0% chance of three cuts by December.
Against the Japanese yen JPY= , the dollar weakened by
0.41%, last at 107.97. It was down 0.4% against the euro EUR=
to 1.132. Among the biggest movers was the Canadian dollar
CAD= which strengthened 0.43% to 1.331.



Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.