Dollar Trading Mixed After Jobs Report Disappoints
December 07 2018 - 08:48AM
RTTF2
The dollar is turning in a mixed performance against its major
rivals Friday afternoon, but remains little changed overall. The
release of the weaker than expected November jobs report this
morning has investors feeling uncertain about the pace of Fed rate
hikes next year.
After reporting strong job growth in the previous month, the
Labor Department released a report Friday morning showing
employment in the U.S. increased by much less than expected in the
month of November.
The report said non-farm payroll employment rose by 155,000 jobs
in November after surging up by a downwardly revised 237,000 jobs
in October. Economists had expected employment to climb by about
200,000 jobs compared to the jump of 250,000 jobs originally
reported for the previous month.
Meanwhile, the report said the unemployment rate in November
remained unchanged for the second straight month at 3.7 percent,
holding at its lowest level since hitting 3.5 percent in December
of 1969.
A preliminary report released by the University of Michigan on
Friday showed U.S. consumer sentiment has held steady in the month
of December. The report said the consumer sentiment index for
December came in at 97.5, unchanged from the final November
reading. Economists had expected the index to dip to 97.0.
Wholesale inventories in the U.S. increased by slightly more
than anticipated in the month of October, according to a report
released by the Commerce Department on Friday. The Commerce
Department said wholesale inventories advanced by 0.8 percent in
October after climbing by an upwardly revised 0.7 percent in
September.
Economists had expected inventories to rise by 0.7 percent
compared to the 0.4 percent increase originally reported for the
previous month.
The dollar has dropped to around $1.14 against the Euro Friday
afternoon, from an early high of $1.1360.
Eurozone's economic growth rate halved in the third quarter as
estimated initially, latest figures from the Eurostat showed on
Friday. Gross domestic product grew 0.2 percent from the second
quarter, when it increased 0.4 percent.
Germany's industrial production in October unexpectedly dropped
for the first time in three months, suggesting that manufacturing
is yet to recover from a slowdown despite some improvement in
demand.
Industrial production dropped 0.5 percent from September, when
they grew 0.1 percent, revised from 0.2 percent, preliminary
figures from the Federal Statistical Office showed on Friday.
Economists had forecast a 0.3 percent increase.
The buck has climbed to around $1.2725 against the pound
sterling Friday afternoon, from an early low of $1.2790.
UK house price inflation slowed more-than-expected in November
to its lowest level since December 2012, figures the Lloyds Banking
Group subsidiary Halifax showed on Friday. The house price index
rose 0.3 percent year-on-year in the three months to November,
after a 1.5 percent increase in the three months to October.
Economists had expected 1 percent growth.
The greenback reached an early high of Y112.927 against the
Japanese Yen Friday, but has since retreated to around
Y112.725.
The average of household spending in Japan was down 0.3 percent
on year in October, the Ministry of Internal Affairs and
Communications said on Friday, coming in at 290,396 yen. That
missed expectations for an increase of 1.1 percent following the
1.6 percent decline in September.
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