- U.S. added more jobs than expected in October
- Dollar weighed down by trade optimism, slowdown fears
(New throughout, updates prices, market activity and comments to U.S. market open, new byline, changes dateline, previous LONDON)
The dollar rose on Friday after data showed that U.S. jobs growth slowed less than expected in October, while wages gained and hiring in the prior two months was stronger than previously estimated.
Nonfarm payrolls increased by 128,000 jobs last month, while average hourly earnings increased six cents, or 0.2% after being unchanged in September.
“The data is much better than expected. Markets were braced, certainly in headline terms, for some much weaker numbers given the expected impact from the GM strike and the census hiring. So very good data in that context,” said Shaun Osborne, chief fx strategist at Scotiabank in Toronto.
Striking workers who do not receive a paycheck during the payrolls survey period are treated as unemployed. The strike by about 46,000 workers at GM plants in Michigan and Kentucky ended last Friday.
Temporary census workers also left their jobs during the month.
The dollar index against a basket of six major currencies .DXY rose as high as 97.45, up from 99.27 before the data, before retracing to 97.30, up 0.02% on the day.
The dollar has weakened since the Federal Reserve on Wednesday cut rates for the third time this year, and indicated that further reductions may not be forthcoming.
Concerns about a slowing U.S. economy is weighing on the greenback, with the U.S. central bank expected to resume rate cuts if the economic data worsens.
Safe haven flows into the U.S. currency have also weakened on optimism that the United States and China are close to reaching a deal to end their trade war, which has been blamed for slowing global growth.
“The apparent progress on U.S.-China trade talks has undercut the dollar to some extent,” said Osborne. And, “there is a bit more vulnerability starting to feed into the dollar with perhaps the U.S. economy slowing down.”
The initial "phase one" trade pact with China appears to be in good shape and is likely to be signed around mid-November, although a finite date is still in question, U.S. Commerce Secretary Wilbur Ross said on Friday.
======================================================== Currency bid prices at 9:15AM (1315 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1138 $1.1150 -0.11% -2.89% +1.1168 +1.1129 Dollar/Yen JPY= 108.0900 108.0200 +0.06% -1.97% +108.2500 +107.9000 Euro/Yen EURJPY= 120.40 120.46 -0.05% -4.61% +120.6500 +120.3700 Dollar/Swiss CHF= 0.9884 0.9863 +0.21% +0.71% +0.9894 +0.9855 Sterling/Dollar GBP= 1.2948 1.2940 +0.06% +1.50% +1.2972 +1.2928 Dollar/Canadian CAD= 1.3179 1.3159 +0.15% -3.36% +1.3195 +1.3140 Australian/Doll AUD= 0.6895 0.6893 +0.03% -2.18% +0.6911 +0.6885 arEuro/Swiss EURCHF= 1.1012 1.0999 +0.12% -2.15% +1.1014 +1.0999 Euro/Sterling EURGBP= 0.8601 0.8615 -0.16% -4.26% +0.8629 +0.8596 NZ NZD= 0.6427 0.6411 +0.25% -4.32% +0.6442 +0.6407 Dollar/DollarDollar/Norway NOK= 9.1231 9.1906 -0.73% +5.61% +9.1983 +9.1144 Euro/Norway EURNOK= 10.1640 10.2490 -0.83% +2.60% +10.2585 +10.1568 Dollar/Sweden SEK= 9.6034 9.6499 -0.62% +7.14% +9.6563 +9.5822 Euro/Sweden EURSEK= 10.6971 10.7641 -0.62% +4.22% +10.7710 +10.6885
