The US Dollar declined against all of its most traded peers, falling from a seven week high against the Euro after US jobs data disappointed the market by coming in lower than expected. The weaker figure has no cast doubt on whether the Federal Reserve will choose to taper its monetary easing policy this month.
According to the Washington based Labor Department, the number of new payrolls rose by 169,000 in August. A disappointing figure as economists had been calling for a rise of 180,000 new jobs. The overall unemployment rate fell to 7.3%. The report also showed that the U.S. private sector added 152,000 jobs last month, compared to expectations for an 180,000 rise, following a downwardly revised increase of 127,000 in July.
“Not only did the headline number in August disappoint expectations, we also had a poor set of revisions. Markets are going to start to question whether the Fed will be tapering” said Brian Daingerfield, a currency strategist at Royal Bank of Scotland.
Despite overall unemployment hitting its lowest level since December 2008, the markets were left disappointed by the downward revision of previous reports. The gain in workers last month followed a revised 104,000 rise in July that was smaller than initially estimated.
“Even the Federal Reserve would conclude that the employment trend is moderating and for that reason alone they probably will have second thoughts about tapering bond purchases this month,” said Cary Leahey, senior advisor at Decision Economics in New York.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6415
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7618
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1092
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6649
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0455
(Correct as of 14:20 pm GMT)
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