NEW YORK (CBSNewYork) – The dollar was little changed to slightly lower, having fallen from a three-month high earlier on Friday, pulled down by some of the weaker specifics of an overall solid June nonfarm payrolls data in the United States. Later in the session, volume is expected to taper off ahead of the July 4th holiday weekend.
Despite a weak dollar on Friday, the dollar was expected to close the week on a high note, with a gain of 0.8 percent. The dollar was trading higher ahead of the announcement due to expectations of a strong jobs report. Nonfarm payrolls in the United States increased by 850,000 jobs last month, compared to 583,000 in May, according to data. However, the unemployment rate increased to 5.9% from 5.8% in May, and the carefully monitored average hourly wages, a measure of wage inflation, increased by 0.3 percent last month, somewhat less than the consensus prediction of 0.4 percent. “We originally reacted favourably to the headline, which was stronger than expected,” said Vassili Serebriakov, a New York-based FX strategist. “And then went a little lower due to some of the report’s weaker specifics, such as the higher unemployment rate and the higher bar for a good surprise,” says the author. The dollar index was marginally lower in late morning trade at 92.517, after touching a three-month high of 92.759 earlier.
The dollar recovered some of its losses when data revealed that industrial orders in the United States increased by 1.7 percent in May after falling by 0.1 percent in April. Factory orders were expected to rise by 1.6 percent, according to economists polled by Reuters. On a year-over-year basis, orders grew 17.22%. The euro was trading at US$1.1832, down 0.2 percent on the day. The dollar fell 0.2 percent against the yen to 111.305 yen. The dollar’s value against the yen reached a 15-month high on Thursday. TD Securities stated in a research note that despite the drop, the dollar is not on the verge of a big correction.
“We believe the overall tone of the report remains favorable, notwithstanding the initial’sell the fact’ reaction that appears to be beginning. The June data provides reassurance that the US economic recovery is on pace, following two straight ‘disappointments.’ “According to the Canadian bank. The dollar has risen sharply since the Federal Reserve of the United States startled investors last month by hinting that it may tighten policy sooner than expected to combat inflation. ======================================================== At 10:56 a.m., currency bid prices were as follows: (1456 GMT) RIC RIC RIC RIC RIC RIC YTD Pct High Bid Low Bid Last U.S. Close Pct Change Changes Before Session The dollar index is a measure of the value of 92.4980 92.5690 -0.06% 92.5690 -0.06% 92.5690 -0.06% 92 +92.7590 +92.3710 Euro/Dollar 2.797percent +92.7590 +92.3710 US$1.1835 US$1.1851 -0.133% -3.133% +US$1.1859 +US$1.1807Dollar/YenDollar/YenDollar/YenDollar/YenDollar/YenDollar/YenDollar/YenDollar/YenDollar/YenDo 111.3050 111.5750 -0.21percent 111.3050 111.5750 -0.21percent +7.76percent +111.6550 +111.1500 Euro/Japanese Yen 131.72 132.15 -0.33 percent +3.78 percent +132.2200 +131.6900Dollar/Swiss Sterling/Dollar 0.9242 0.9257 -0.13percent +4.49percent +0.9274 +0.9224Sterling/Dollar 0.9242 0.9257 -0.13percent +4.49percent +0.9274 +0.9224Sterling/Dollar US$1.3779 US$1.3764 +0.11% +0.86% +US$1.3790 +US$1.3734Dollar/CanadianDollar/CanadianDollar/CanadianDollar/CanadianDollar/CanadianDollar/CanadianDollar/CanadianDollar/CanadianDo +1.2449 +1.2359Aussie/Dollar 1.2372 1.2437 -0.52 percent -2.84 percent +1.2449 +1.2359Aussie/Dollar US$0.7488 US$0.7471 +0.23 percent -2.66 percent +US$0.7497 +US$0.7445 Euro/Swiss 0.8589 0.8603 -0.16per cent -3.89per cent +0.8617 +0.8589NZD 1.0937 1.0965 -0.26per cent +1.20per cent +1.0972 +1.0937Euro/Sterling 0.8589 0.8603 -0.16per cent -3.89per cent +0.8617 +0.8589NZD Dollar/DollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollarDollar +0.08per cent +0.60per cent +8.6735 +8.6255Euro/Norway 8.6325 8.6315 +0.08per cent +0.60per cent +8.6735 +8.6255 +10.2598 +10.2150Dollar/Sweden 10.2178 10.2179 +0.00per cent -2.38per cent +10.2598 +10.2150Dollar/Sweden Euro/Sweden: 8.5725 8.5722 -0.07% +4.59% +8.6014 +8.5577Euro/Sweden: 8.5725 8.5722 -0.07% +4.59% +8.6014 +8.5577Euro/Sweden: 8.5725 8.5722 10.1471 10.1547 -0.07% +0.70% +10.1740 +10.1429 -0.07% -0.07% -0.07% -0.07% -0.07% -0.07% -0.07% -0.07% -0.07% (Reporting by Gertrude Chavez-Dreyfuss; Editing by Emelia Sithole-Matarise, William Maclean and Jonathan Oatis)/n
