Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar steady after jobs miss as investors bet taper is on track

EconomyOct 08, 2021 03:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Euro, Hong Kong dollar, U.S. dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, January 21, 2016. REUTERS/Jason Lee/Illustration/File Photo

By Saqib Iqbal Ahmed

NEW YORK (Reuters) -The U.S. dollar was little moved by a disappointing U.S. employment report on Friday, as traders bet that the numbers will not sway the Federal reserve from starting a tapering of its asset purchases as early as November.

The Labor Department said in its employment report on Friday that nonfarm payrolls increased by 194,000 last month. Economists polled by Reuters had forecast an increase of 500,000 jobs.

The fact that the gain was modest could temper expectations for a swift acceleration in economic growth following an apparent sharp slowdown in the third quarter, but is unlikely to stop the Federal Reserve from starting the process of reducing its monthly bond purchases as soon as November, analysts said.

September's employment report is the last one available before the Federal Reserve's Nov. 2-3 policy meeting.

"(It's a) miss on the headline number for sure, but the underlying details are not as really nefarious as the top-line miss would suggest and so, ultimately, it’s still consistent with the Fed delivering taper next month," said Mazen Issa, senior FX strategist, at TD Securities in New York.

The dollar index, which tracks the greenback against six major currencies, was down 0.1% at 94.067, not far from the one-year high of 94.504 touched last week.

"I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November, so while you’re seeing a little bit of a pullback in the dollar, I think the Fed remains on track," said Kathy Lien, managing director at BK Asset Management in New York.

TD's Issa said the disappointing jobs number could lead to a dip in the dollar but any such weakness was likely to be fleeting.

"I think the market is going to need a lot more convincing that just one jobs report that’s on the softer side is going to price the Fed out beyond late 2022 and into 2023," Issa said.

In the week following jobs data the dollar tends to reverse most of the gain or loss that has occurred from the day of the NFP release, FX strategists said in a BofA Global Research report on Thursday.

The weaker dollar helped sterling steady on Friday, putting it on track to close out the week up 0.6%, its best weekly performance in 5 weeks, as interest rate hike expectations offset worries about a fuel crisis and labour shortages.

In the digital currency space, bitcoin, the world's biggest cryptocurrency by market value, was 1.5% higher at $54,569.9, just shy of the 5-month high of $56,168 touched earlier in the session. Bitcoin is up about 13% for the week, its second straight weekly gain.

Dollar steady after jobs miss as investors bet taper is on track
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
my day
my day Oct 08, 2021 9:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
perplexed76 .
perplexed76 . Oct 08, 2021 9:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
dissapoints? who?
Charlie Wang
Charlie Wang Oct 08, 2021 1:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hahaha
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email