Dollar Falls After U.S. Jobs Data
December 02 2016 - 4:13AM
RTTF2
The U.S. dollar drifted lower against its most major
counterparts in the European session on Friday, after data showed
that the U.S. employment increased a little more than economists'
expectation in the month of November.
Report released by the Labor Department showed that non-farm
payroll employment climbed by 178,000 jobs in November following a
downwardly revised increase of 142,000 jobs in October.
Economists had expected employment to increase by about 170,000
jobs compared to the addition of 161,000 jobs originally reported
for the previous month.
The Labor Department also said the unemployment rate fell to 4.6
percent in November from 4.9 percent in October. The unemployment
rate had been expected to remain unchanged.
The data is cementing expectations the Federal Reserve will
raise interest rates when it meets in less than two weeks.
Recent economic indicators have also suggested improving
economic growth in the U.S, boosting hopes for a 25 basis point
hike at this month's meeting.
The greenback has been trading lower against its major
counterparts in the Asian session, with the exception of the
franc.
The greenback declined to 1.2652 against the pound, following a
high of 1.2570 hit at 7:45 pm ET. Continuation of the greenback's
downtrend may see it finding support around the 1.28 mark.
Survey data from IHS Markit showed that U.K. construction sector
expanded at a faster pace in November on robust activity and new
orders.
The Markit/Chartered Institute of Procurement & Supply
construction Purchasing Managers' Index rose unexpectedly to 52.8
in November from 52.6 in October.
The greenback weakened to an 8-day low of 1.0070 against the
Swiss franc, reversing from a high of 1.0122 hit at 5:15 am ET. If
the greenback extends decline, 0.97 is likely seen as its next
support level.
Data from the State Secretariat for Economic Affairs showed that
Switzerland's economic growth remained flat in the third quarter as
increase in investment was offset by net trade.
Gross domestic product registered nil growth in third quarter
after expanding 0.6 percent a quarter ago. The economy was forecast
to grow 0.3 percent.
The greenback slipped to a 2-day low of 113.47 against the
Japanese yen, compared to 114.06 hit late New York Thursday. On the
downside, 112.00 is possibly seen as the next support level for the
greenback.
Data from the Bank of Japan showed that Japan's monetary base
advanced 21.5 percent on year in November, coming in at 417.657
trillion yen.
That follows the 22.1 percent spike in October.
The greenback fell to 1.3254 against the loonie, its weakest
since October 21. The next possible support for the
greenback-loonie pair is seen around the 1.30 area.
The greenback fell to 2-day lows of 0.7127 against the kiwi and
0.7442 against the aussie, compared to Thursday's closing values of
0.7089 and 0.7414, respectively. Further downtrend may take the
greenback to support levels of around 0.73 against the kiwi and
0.76 against the aussie.
On the flip side, the greenback was trading higher against the
euro, with the pair worth 1.0634. The greenback is seen finding
resistance near the 1.05 region.
The Federal Reserve Governor Daniel Tarullo delivers a speech
titled "Financial Regulation Since the Crisis" at the Financial
Stability Conference in Washington DC at 1:00 pm ET.
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