The U.S. dollar slumped on Friday after data showed that the world's largest economy created more new jobs than expected last month, but suggested signs of slowing with the higher unemployment rate and lower wage inflation.
Nonfarm payrolls increased 261,000 last month, data showed on Friday. Data for September was revised higher to show 315,000 jobs added instead of 263,000 as previously reported. Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 120,000 to 300,000.
However, the unemployment rate rose to 3.7% from September's 3.5%. Average hourly earnings increased 0.4% after rising 0.3% in September, but the rise in wages slowed to 4.7% year-on-year in October after advancing 5.0% in September.
"The U.S. labor market is strong and the data was hot," said Naeem Aslam, chief market analyst at Avatrade in London.
"However, the devil is in (the) detail(s) and that is the unemployment rate has ticked higher and this may keep a lid on the dollar rally. But for now, one thing is clear: that the Fed has clear path to continue on its hawkish monetary policy stance."
The dollar fell 0.8% against the yen to 147.11 JPY=EBS , while the euro rose 1.3% to $0.9870 EUR=EBS . The fed funds futures on Friday priced in a 58% chance of a 75-basis-point interest rate hike next month, and a 43% probability of a 50-basis-point increase. The odds of a 75-basis-point rise went as high as 64% immediately after the data. FEDWATCH
The Fed's terminal rate, or the level at which rates peak slipped to 5.16% after payrolls, from about 5.2% just before.
The dollar strengthened across the board for most of the week after Federal Reserve Chair Jerome Powell on Wednesday said the central bank could continue to increase rates if inflation doesn't slow, causing markets to price in a higher peak for U.S. rates.
======================================================== Currency bid prices at 9:38AM (1338 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index =USD 111.6900 112.9700 -1.12% 16.754% +112.9900 +111.5000 Euro/Dollar EUR=EBS $0.9865 $0.9750 +1.19% -13.22% +$0.9881 +$0.9745 Dollar/Yen JPY=EBS 147.3150 148.2600 -0.63% +27.98% +148.3950 +146.9200 Euro/Yen EURJPY= 145.33 144.55 +0.54% +11.52% +145.4000 +144.2400 Dollar/Swiss CHF=EBS 1.0007 1.0138 -1.28% +9.71% +1.0143 +0.9986 Sterling/Dollar GBP=D3 $1.1258 $1.1159 +0.91% -16.73% +$1.1296 +$1.1150 Dollar/Canadian CAD=D3 1.3542 1.3750 -1.50% +7.11% +1.3750 +1.3513 Aussie/Dollar AUD=D3 $0.6433 $0.6288 +2.31% -11.49% +$0.6454 +$0.6285 Euro/Swiss EURCHF= 0.9873 0.9879 -0.06% -4.80% +0.9887 +0.9848 Euro/Sterling EURGBP= 0.8760 0.8736 +0.27% +4.29% +0.8761 +0.8700 NZ NZD=D3 $0.5874 $0.5776 +1.72% -14.16% +$0.5897 +$0.5756 Dollar/DollarDollar/Norway NOK=D3 10.3435 10.5725 -1.16% +18.62% +10.5775 +10.4400 Euro/Norway EURNOK= 10.2064 10.3123 -1.03% +1.95% +10.3264 +10.1837 Dollar/Sweden SEK= 11.0127 11.1648 -0.51% +22.12% +11.2050 +10.9865 Euro/Sweden EURSEK= 10.8644 10.9201 -0.51% +6.16% +10.9237 +10.8470 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates https://tmsnrt.rs/2RBWI5E^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
