News: FOREX-Dollar weakens as strong U.S. jobs data dims haven appeal

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    • U.S. economy creates 4.8 mln jobs
    • Safe-haven dollar also hurt by vaccine news
    • Dollar on pace to post losses for 2nd straight week
    • Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

    (Adds analyst comment, more details on jobs report, updates prices)

    The U.S. dollar fell on Thursday after data showing the world's largest economy defying expectations for a second month in a row, creating jobs in June at a far faster pace than market forecasts.

    The greenback was on track to post losses for a second straight week against a basket of major currencies.

    Data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the most since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June.

    The unemployment rate, meanwhile, fell to 11.1% last month from 13.3% in May. The report further diminished the dollar's appeal as a safe haven. "Everything still seems to be heading in the right direction. Right now, expectations are pretty high that the economy is rebounding back," said Edward Moya, senior market strategist at OANDA in New York.

    In midmorning trade, the dollar index slid 0.1% to 97.064 =USD , as the euro rose 0.1% versus the greenback to $1.1262 EUR=EBS .

    Traders are focused on whether the euro can close above $1.13 and OANDA's Moya said it could happen. "This is going to support the belief that a massive weakening in the U.S. dollar is upon us because there's still optimism that risky assets are going to shine because the Federal Reserve is going to remain very accommodative," Moya said.

    Despite the dollar's recent spell of weakness, the greenback is still up 2.5% from the 2020 low of 94.6 in the dollar index hit in early March. A Reuters poll predicts more weakness for the greenback over the next 12 months due to weak global demand.

    The dollar, however, gained 0.1% against the yen to 107.59 yen JPY=EBS . The U.S. currency had been buffeted earlier in the session by news that a COVID-19 vaccine developed by German biotech firm BioNTech BNTX.O and U.S. pharmaceutical giant Pfizer PFE.N had shown potential in early-stage human trials.

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    	Currency bid prices at 9:41AM (1341 GMT) 
    
     Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
    											  Previous				   Change				  
    											  Session											
     Euro/Dollar	  EUR=		$1.1263		$1.1250	 +0.12%		 +0.47%	  +1.1302	 +1.1248 
     Dollar/Yen	   JPY=		107.5800	   107.4600	+0.11%		 -1.18%	  +107.7200   +107.3400 
     Euro/Yen		 EURJPY=	 121.17		 120.90	  +0.22%		 -0.64%	  +121.4300   +120.7700 
     Dollar/Swiss	 CHF=		0.9446		 0.9457	  -0.12%		 -2.40%	  +0.9464	 +0.9427 
     Sterling/Dollar  GBP=		1.2491		 1.2470	  +0.17%		 -5.79%	  +1.2529	 +1.2462 
     Dollar/Canadian  CAD=		1.3578		 1.3585	  -0.05%		 +4.56%	  +1.3611	 +1.3564 
     Australian/Doll  AUD=		0.6932		 0.6914	  +0.26%		 -1.27%	  +0.6943	 +0.6905 
     ar																							  
    
     Euro/Swiss	   EURCHF=	 1.0639		 1.0640	  -0.01%		 -1.96%	  +1.0661	 +1.0639 
     Euro/Sterling	EURGBP=	 0.9015		 0.9018	  -0.03%		 +6.64%	  +0.9032	 +0.9006 
     NZ			   NZD=		0.6521		 0.6475	  +0.71%		 -3.19%	  +0.6536	 +0.6475 
     Dollar/Dollar																				   
    
     Dollar/Norway	NOK=		9.4753		 9.5133	  -0.40%		 +7.94%	  +9.5302	 +9.4396 
     Euro/Norway	  EURNOK=	 10.6716		10.7025	 -0.29%		 +8.47%	  +10.7260	+10.6480 
     Dollar/Sweden	SEK=		9.2943		 9.3064	  -0.03%		 -0.56%	  +9.3157	 +9.2378 
     Euro/Sweden	  EURSEK=	 10.4689		10.4716	 -0.03%		 +0.00%	  +10.4811	+10.4313 
    	<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 
    USD positions	https://tmsnrt.rs/31P1RPZ 
    
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