Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forex - Dollar Inches Lower as U.S. Jobs, Services Activity Disappoint

ForexAug 03, 2018 13:25
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The U.S. created less jobs than expected in July

Investing.com - The dollar fell against its rivals Friday as data showed the U.S. economy created fewer jobs than expected and services activity slowed in July.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.15% to 94.86.

The U.S. economy added just 157,000 jobs in June, well below forecasts for 193,000 new jobs, while the unemployment rate was unchanged at 3.9%, the Labor Department said on Friday.

Analysts played down the weaker nonfarm payrolls, saying the underlying trend of U.S. job creation remained on track.

"Even with today's miss, the trend in payroll growth remains solid," Wells Fargo (NYSE:WFC) said.

Average hourly earnings grew 0.3% in July, and 2.7% in the 12 months through July, in line with economists' forecasts. But analysts said the timid wage growth does little to support the Fed's position that tighter labor markets would lead to price pressures.

"Wages are moving up but we're not seeing a spike in wages that would concern the market about a sudden rise in inflation," said Evan Brown, director of asset allocation at UBS Asset Management. "There's not much of a reaction in markets at the moment."

The services sector, a critical component of the US economy accounting for roughly 80% of U.S. private-sector gross domestic product (GDP), unexpectedly weakened in July, according to the Institute of Supply Management's Index.

ISM non-manufacturing data for July showed an drop to 55.7, missing expectations of 58.6.

A rise in yen on safe-haven demand amid fresh U.S.-China trade-war fears also held back the dollar.

China is reportedly preparing to retaliate - against the United States' recent threat to raise trade penalties on goods imported from China - with tariffs on about $60 billion worth of U.S. goods.

USD/JPY fell 0.38% to Y111.23, while USD/CHF fell 0.25% even as the Swiss National Bank said there was room to lower rates if needed.

EUR/USD rose 0.05% to $1.1591 while USD/CAD fell 0.35% to C$1.2978.

GBP/USD fell 0.01% to $1.3017 amid Brexit-related angst after the Bank of England governor Mark Carney said the risk of a no-deal Brexit was "uncomfortably high."

Forex - Dollar Inches Lower as U.S. Jobs, Services Activity Disappoint
 

Related Articles

The GBPUSD Rebounds Following Rishi Sunak Budget Speech
The GBPUSD Rebounds Following Rishi Sunak Budget Speech By Investing.com - Oct 27, 2021

By Sam Boughedda Investing.com — The GBP/USD saw a bounce earlier today following U.K. Chancellor Rishi Sunak's budget speech. In the upbeat speech, Sunak said the U.K. economy had...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email