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The U.S. dollar was perched at a 15-month high on the yen and at multi-month peaks against other majors on Friday, as traders wagered strong U.S. labour data could lift it even further.
FILE PHOTO: An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany
02 Jul 2021 09:35PM
NEW YORK -The dollar slipped from a three-month high on Friday, weighed down by some of the weaker details of what was an overall strong U.S. non-farm payrolls report for June.
Despite Friday's slide, the dollar was still poised to end the week on a positive note, with a 0.6per cent gain. Going into the report, the dollar traded higher on the expectation of a robust jobs number.
Data showed that U.S. nonfarm payrolls did beat expectations, increasing by 850,000 jobs last month after rising 583,000 in May. But the unemployment rate rose to 5.9per cent from 5.8per cent in May, while the closely-watched average hourly earnings, a gauge of wage inflation, rose 0.3per cent last month, lower than the consensus forecast for a 0.4per cent increase.
"We initially reacted positively to the headline, which was stronger than expected," said Vassili Serebriakov, FX strategist, at UBS in New York. "And then moved a little lower because of some of the weaker details of the report such as the higher unemployment rate and the higher bar for a positive surprise."
In mid-morning trading, the dollar index fell 0.2per cent to 92.421, after earlier hitting a three-month high of 92.759.
The greenback has strengthened broadly since the U.S. Federal Reserve surprised markets last month by signalling it could tighten policy earlier than expected to curb inflation.
The euro was slightly higher on the day at US$1.1854, after trading lower before the jobs report.
Against the yen, the dollar slid 0.4per cent to 111.185 yen. On Thursday, the greenback hit a 15-month peak versus the Japanese currency.
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Currency bid prices at 9:21AM (1321 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 92.3710 92.5690 -0.20per cent 2.656per cent +92.7590 +92.3720
Euro/Dollar US$1.1856 US$1.1851 +0.05per cent -2.95per cent +US$1.1859 +US$1.1807
Dollar/Yen 111.1950 111.5750 -0.34per cent +7.62per cent +111.6550 +111.1500
Euro/Yen 131.83 132.15 -0.24per cent +3.87per cent +132.2200 +131.7000
Dollar/Swiss 0.9230 0.9257 -0.28per cent +4.33per cent +0.9274 +0.9224
Sterling/Dollar US$1.3785 US$1.3764 +0.18per cent +0.93per cent +US$1.3790 +US$1.3734
Dollar/Canadian 1.2376 1.2437 -0.49per cent -2.81per cent +1.2449 +1.2376
Aussie/Dollar US$0.7494 US$0.7471 +0.31per cent -2.58per cent +US$0.7496 +US$0.7445
Euro/Swiss 1.0942 1.0965 -0.21per cent +1.25per cent +1.0972 +1.0937
Euro/Sterling 0.8600 0.8603 -0.03per cent -3.77per cent +0.8617 +0.8591
NZ US$0.7000 US$0.6969 +0.44per cent -2.52per cent +US$0.7001 +US$0.6947
Dollar/Dollar
Dollar/Norway 8.6150 8.6315 +0.09per cent +0.61per cent +8.6735 +8.6255
Euro/Norway 10.2150 10.2179 -0.03per cent -2.41per cent +10.2598 +10.2150
Dollar/Sweden 8.5586 8.5722 -0.06per cent +4.42per cent +8.6014 +8.5593
Euro/Sweden 10.1485 10.1547 -0.06per cent +0.72per cent +10.1740 +10.1429
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Emelia Sithole-Matarise, William Maclean)
Source: Reuters
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Dollar slides from 3-month high on weak details of US jobs report
The U.S. dollar was perched at a 15-month high on the yen and at multi-month peaks against other majors on Friday, as traders wagered strong U.S. labour data could lift it even further.
FILE PHOTO: An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany
02 Jul 2021 09:35PM
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NEW YORK -The dollar slipped from a three-month high on Friday, weighed down by some of the weaker details of what was an overall strong U.S. non-farm payrolls report for June.
Despite Friday's slide, the dollar was still poised to end the week on a positive note, with a 0.6per cent gain. Going into the report, the dollar traded higher on the expectation of a robust jobs number.
Data showed that U.S. nonfarm payrolls did beat expectations, increasing by 850,000 jobs last month after rising 583,000 in May. But the unemployment rate rose to 5.9per cent from 5.8per cent in May, while the closely-watched average hourly earnings, a gauge of wage inflation, rose 0.3per cent last month, lower than the consensus forecast for a 0.4per cent increase.
"We initially reacted positively to the headline, which was stronger than expected," said Vassili Serebriakov, FX strategist, at UBS in New York. "And then moved a little lower because of some of the weaker details of the report such as the higher unemployment rate and the higher bar for a positive surprise."
In mid-morning trading, the dollar index fell 0.2per cent to 92.421, after earlier hitting a three-month high of 92.759.
The greenback has strengthened broadly since the U.S. Federal Reserve surprised markets last month by signalling it could tighten policy earlier than expected to curb inflation.
The euro was slightly higher on the day at US$1.1854, after trading lower before the jobs report.
Against the yen, the dollar slid 0.4per cent to 111.185 yen. On Thursday, the greenback hit a 15-month peak versus the Japanese currency.
========================================================
Currency bid prices at 9:21AM (1321 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index 92.3710 92.5690 -0.20per cent 2.656per cent +92.7590 +92.3720
Euro/Dollar US$1.1856 US$1.1851 +0.05per cent -2.95per cent +US$1.1859 +US$1.1807
Dollar/Yen 111.1950 111.5750 -0.34per cent +7.62per cent +111.6550 +111.1500
Euro/Yen 131.83 132.15 -0.24per cent +3.87per cent +132.2200 +131.7000
Dollar/Swiss 0.9230 0.9257 -0.28per cent +4.33per cent +0.9274 +0.9224
Sterling/Dollar US$1.3785 US$1.3764 +0.18per cent +0.93per cent +US$1.3790 +US$1.3734
Dollar/Canadian 1.2376 1.2437 -0.49per cent -2.81per cent +1.2449 +1.2376
Aussie/Dollar US$0.7494 US$0.7471 +0.31per cent -2.58per cent +US$0.7496 +US$0.7445
Euro/Swiss 1.0942 1.0965 -0.21per cent +1.25per cent +1.0972 +1.0937
Euro/Sterling 0.8600 0.8603 -0.03per cent -3.77per cent +0.8617 +0.8591
NZ US$0.7000 US$0.6969 +0.44per cent -2.52per cent +US$0.7001 +US$0.6947
Dollar/Dollar
Dollar/Norway 8.6150 8.6315 +0.09per cent +0.61per cent +8.6735 +8.6255
Euro/Norway 10.2150 10.2179 -0.03per cent -2.41per cent +10.2598 +10.2150
Dollar/Sweden 8.5586 8.5722 -0.06per cent +4.42per cent +8.6014 +8.5593
Euro/Sweden 10.1485 10.1547 -0.06per cent +0.72per cent +10.1740 +10.1429
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Emelia Sithole-Matarise, William Maclean)
Source: Reuters
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