The dollar has returned to growth after the release of US employment data

04.09.2015

On Friday, the dollar strengthened modestly against other major currencies after data showed that the number of non-farm payrolls rose less than expected last month, while the unemployment rate fell more than initially expected.

The US Labor Department said the number of people employed in non-farm payrolls rose by 173 000 in August, against growth forecast by 220 000. In July, the employed number rose 245 000, the figure being revised down from 215 000.

The report also showed that the US unemployment rate fell to 5.1% last month from 5.3% in July. Analysts had expected the unemployment rate to fall to 5.2% in August.

Average hourly wages rose in August 0.3%, while it was expected to rise 0.2%, after rising 0.2% the previous month.

The USD index, which shows the relationship of the US dollar against the basket of six major currencies, went up 0.13% to 96.44.

The dollar turned in the direction of growth in relation to euro; EUR/USD fell 0.14% to 1.1111 after the maximum of 1.1188 marked earlier in the session.

The single currency came under pressure after Thursday's European Central Bank pointed to the likelihood of expansion of the current QE program amid growing risks of worsening inflation outlook.

The ECB lowered its forecast for growth and inflation, citing oil prices and slowing growth in China.

Earlier on Friday, official data showed that the volume of industrial orders in Germany declined in July by 1.4%, significantly more than the expected decline of 0.6%. The volume of industrial orders rose 1.8% in June, the figure being revised up from the previously expected growth of 2.0%.

Dollar holds losses against the yen; USD/JPY pair dropped 0.70% to 119.01.

The dollar rose against the pound, GBP/USD pair falling 0.24% to fresh three-month low 1.5224, and it is steady against the Swiss franc: the USD/CHF pair is traded at 0.9735.

The Australian and New Zealand dollars have shown a decline; AUD/USD fell 0.74% to 0.6967, and NZD/USD pair weakened 0.65% to 0.6356.

Meanwhile, the USD/CAD pair rose 0.19% and was traded at 1.3207 after data showed that the number of employees in Canada rose 12000 in August, while there expected a decline by 4500, after increasing by 6 600 in the previous month.

The unemployment rate in Canada rose last month to 7.0% from 6.8% in July. Analysts had expected the unemployment rate to remain unchanged in August.

Back Next suggested article