Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Dollar remains broadly lower, ISM report on tap

Published 10/05/2015, 08:35 AM
Updated 10/05/2015, 08:35 AM
© Reuters.  Dollar remains on the downside with eyes on U.S. service sector data

Investing.com - The dollar remained broadly lower against the other major currencies on Monday, as Friday's U.S. jobs data dampened expectations for a U.S. rate hike before the end of the year and as investors eyed an upcoming report on U.S. service sector activity.

The dollar was higher against the yen, with USD/JPY up 0.28% at 120.23, off Friday's one-month low of 118.66, as investors locked in profits on the greenback’s fall.

The Labor Department reported on Friday that the U.S. economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.

August’s reading was revised down to 135,000, from the initial reported figure of 173,000.

Average hourly earnings were flat month-on-month and the labor force participation rate fell to just 62.4%, down from 62.6% in August. The unemployment rate was unchanged at 5.1%, in line with forecasts.

The report underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.

The dollar was lower against the euro, with EUR/USD adding 0.21% to 1.1233.

Research group Markit earlier said Germany's services purchasing managers' index slipped to 54.1 in September from 54.3 in August, while France's services PMI ticked up to 51.9 from 51.2.

Markit's services PMI for the entire euro zone fell to 53.7 last month from 54.0 in August.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5181, after rising to one-week highs of 1.5244 earlier in the session, while USD/CHF edged up 0.20% to 0.9733.

Sterling was hit after Markit reported that its U.K. services PMI fell to 53.3 in September from a reading of 55.6 the previous month. Analysts had expected the index to rise to 56.0 last month.

The Australian and New Zealand dollars were stronger, with AUD/USD gaining 0.59% to 0.7089 and with NZD/USD jumping 1.05% to 0.6510.

Data earlier showed that job advertisements in Australia increased by 3.9% in September after a 1.3% rise in August, whose figure was revised from a previously anticipated 1.0% gain.

Meanwhile, USD/CAD slid 0.40% to trade at 1.3100.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 95.88, close to Friday's two-week low of 95.30.

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.