Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

FOREX-Dollar slides to more than two-month low after big U.S. jobs miss

Published 2021-05-07, 10:04 a/m
Updated 2021-05-07, 10:06 a/m
© Reuters.

© Reuters.

* Nonfarm payrolls rose by 266,000 jobs vs forecast of 978,000

* Dollar down broadly

* MSCI EM currency index hits record high

* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds reaction to U.S. jobs data, analysts' comments, updates prices, changes dateline)

By John McCrank

NEW YORK, May 7 (Reuters) - The dollar fell to its lowest in more than two months on Friday after U.S. jobs data for April came in well below expectations, putting a damper on hopes that a roaring economic recovery would lead to higher rates any time soon.

Nonfarm payrolls increased by only 266,000 jobs last month after rising by 770,000 in March, the Labor Department said in its closely watched employment report on Friday. Economists polled by Reuters had forecast payrolls advancing by 978,000 jobs. dollar was down 0.34% at 90.561 against a basket of major currencies, having dropped as low as 90.338, its lowest since Feb. 26, following the data.

"The dollar is really getting spanked this morning," said Boris Schlossberg, managing director of FX strategy at BK Asset Management.

"The number was so out of consensus, that I think the market expectation of super-high rates and a squeeze on inflation is going to go down by the wayside, and that obviously means more liquidity from the Fed," he said.

It also means U.S. interest rates will stay at ultra-low levels for quite a while and that is going to keep the pressure on the dollar, Schlossberg added.

The euro was up 0.44% against the greenback at $1.21140 EUR=EBS and the British pound was up 0.3% at $1.3933 GBP=D3 .

"This is only one report, but this is changing many traders' thinking on how this recovery is unfolding," said Edward Moya, senior market analyst at FX broker OANDA, in New York.

Elsewhere, China's exports unexpectedly accelerated in April and import growth hit a decade high, helping to push the yuan and Asian stocks higher. yuan was at a more than two-month high versus the dollar, set for its longest weekly winning streak since September, helped by the strong trade data and softer dollar. MSCI emerging market currency index hit a record high of 1732.79 on Friday, lifted by gains in the Chinese yuan. Monex Europe's Harvey said that emerging market currencies were also benefiting from the "commodity supercycle". Canadian dollar was up 0.27% at 1.2185 to the U.S. dollar, having surged on Thursday to its strongest in more than three years CAD=D3 . Australian dollar was up 0.19% versus the U.S. dollar, at 0.77995 AUD=D3 , more than recouping losses from earlier in the session.

The Aussie has been supported by a strong rally in the prices of Australia's top export earner, iron ore. expect the likes of AUD, CAD and NOK to remain well supported with the backdrop for positive optimism over global growth still quite favourable", MUFG head of research Derek Halpenny wrote in a note.

In cryptocurrencies, ether rose 0.51% to $3,507.92, having hit a all-time high on Thursday ETH=BTSP . was up 1.4%, at $57,237.60 BTC=BTSP .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates

https://tmsnrt.rs/2RBWI5E

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.