- Payroll gains beat expectations in March
- Wage growth slows as people leave labor force
- Trump says U.S., China close to trade deal
(Updates trading and comments to U.S. market open, new byline, changes dateline, previous LONDON)
The dollar fell slightly on Friday after a jobs report for March showed than U.S. job gains were better than expected during the month while wage pressures were muted.
Nonfarm payrolls rose by 196,000 jobs last month. Data for February was revised modestly up to show payrolls rising by 33,000 jobs instead of the previously reported 20,000. February job gains were the smallest since September 2017.
Wage gains also slowed in March and more people dropped out of the labor force. Average hourly earnings increased by four cents, or 0.1 percent in March after jumping 0.4 percent in February.
“It’s a pretty mixed report. The headline was a little bit better than expected, February was revised up slightly, but obviously the average hourly earnings was a big disappointment,” said Win Thin, global head of currency strategy at Brown Brothers Harriman in New York.
Reaction in the dollar was relatively muted, and swung between small gains and losses. The dollar index against a basket of six major currencies was last down 0.06% on the day at 97.256.
Investors are focused on data for further clues about Federal Reserve policy after the U.S. central bank stunned markets in March by abandoning projections for any interest rate hikes this year.
“The takeaway for me is that it basically means steady as she goes,” said Thin.
“The thought of any rate cuts this year seems premature, but at the same time the lack of any wage pressures argues against any hikes. So we’re in the limbo again where the Fed is waiting and seeing,” he said.
Trade talks between the U.S. and China are also in focus as investors hope a deal between the countries may remove some global headwinds to growth.
U.S. President Donald Trump said on Thursday the United States and China were close to a trade deal that could be announced within four weeks, while warning Beijing that it would be difficult to allow trade to continue without a pact.
======================================================== Currency bid prices at 9:02AM (1302 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1234 $1.1220 +0.12% -2.05% +1.1244 +1.1218 Dollar/Yen JPY= 111.6400 111.6500 -0.01% +1.26% +111.8100 +111.6000 Euro/Yen EURJPY= 125.44 125.28 +0.13% -0.62% +125.5100 +125.2400 Dollar/Swiss CHF= 0.9997 0.9996 +0.01% +1.86% +1.0012 +0.9992 Sterling/Dollar GBP= 1.3046 1.3077 -0.24% +2.27% +1.3122 +1.3029 Dollar/Canadian CAD= 1.3371 1.3358 +0.10% -1.92% +1.3402 +1.3348 Australian/Doll AUD= 0.7123 0.7111 +0.17% +1.05% +0.7131 +0.7108 arEuro/Swiss EURCHF= 1.1234 1.1219 +0.13% -0.18% +1.1240 +1.1213 Euro/Sterling EURGBP= 0.8609 0.8581 +0.33% -4.16% +0.8615 +0.8557 NZ NZD= 0.6740 0.6751 -0.16% +0.34% +0.6765 +0.6727 Dollar/DollarDollar/Norway NOK= 8.5900 8.5985 -0.10% -0.56% +8.6083 +8.5871 Euro/Norway EURNOK= 9.6528 9.6500 +0.03% -2.57% +9.6648 +9.6434 Dollar/Sweden SEK= 9.2681 9.2834 -0.01% +3.39% +9.2906 +9.2617 Euro/Sweden EURSEK= 10.4150 10.4160 -0.01% +1.46% +10.4300 +10.4040 All spots FX=Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX World central bank news CEN Economic Forecasts... ECON Official rates...INT/RATE Forex Diary.......MI/DIARY Top events........M/DIARY Diaries...........DIARY Diaries Index........IND/DIARY Press Digests.....PRESS Polls on G7 economies..SURVEY/ European markets......MARKETS/))
