Breaking News

Forex - Dollar extends losses on soft U.S. August jobs report

ForexSep 09, 2013 03:39PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Investing.com - The dollar extended Friday's losses against most major currencies on Monday after a disappointing U.S. August jobs report dampened expectations for the Federal Reserve to begin tapering stimulus programs this month.

Stimulus programs such as the Fed's USD85 million in monthly asset purchases weaken the dollar to spur recovery, and talk of their staying in place — often the product of disappointing U.S. data — can soften the greenback.

In U.S. trading on Monday, EUR/USD was up 0.60% at 1.3260.

The U.S. economy added 169,000 jobs in August, the Bureau of Labor Statistics revealed on Friday, less than market calls for a 180,000 increase.

July 's figure was revised down to 104,000 from 162,000, while June's figure was revised down to 172,000 from 188,000.

The private sector added 152,000 jobs in August, well beneath expectations for a 180,000 rise

The U.S. unemployment rate fell to 7.3% in August, from 7.4% in July, as more people left the workforce. Analysts were expecting the unemployment rate to remain unchanged last month.

The data continued to fuel sentiments that the Federal Reserve may hold off on announcing plans to begin winding down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting.

Even if the Fed does announce plans to taper stimulus programs at its meeting this month it may start out trimming asset purchases very lightly, which could still keep the greenback relatively weak.

Advancing economic indicators in Europe and Asia furthered whetted appetite for risk and repelled investors away from the safe-haven greenback.

The Sentix index of euro zone investor confidence rose to a six-month high of 6.5 in September from -4.9 in August. Analysts were forecasting a -2.8 reading.

The greenback was down against the pound, with GBP/USD up 0.44% at 1.5700.

The dollar was up against the yen, with USD/JPY up 0.46% at 99.58, and down against the Swiss franc, with USD/CHF trading down 0.56% at 0.9322.

In Japan, revised data released earlier showed that the economy expanded by 0.9% in the second quarter, in line with expectations, which sparked demand for higher-yielding asset classes that came at the yen's expense.

The country's economy grew at an annualized rate of 3.8%, higher than an initial estimate of 2.6%, which sparked demand for Japanese stocks in particular.

The yen also came under pressure after Japan won its bid to host the 2020 Summer Olympics, which stoked expectations for increased construction and spending ahead of time.

Separately, China reported that its exports grew 7.2%  year-over-year in August, up from 5.1% in July, which painted a picture of an improving global economy and further suppressed yen demand.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.38% at 1.0372, AUD/USD up 0.45% at 0.9232 and NZD/USD trading up 0.12% at 0.8016.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.44% at 81.81.

Forex - Dollar extends losses on soft U.S. August jobs report

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
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.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 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
Sign up with Email