Investing.com - The dollar plunged against most major global currencies on Friday after much stronger-than-expected jobs data hit the wire in the U.S. and fueled an appetite for risk worldwide.
Improving service-sector data out of the U.S. also sent the greenback falling.
In Asian trading on Friday, EUR/USD was up 1.62% at 1.2378.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, according to the Bureau of Labor Statistics, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.
The news sparked a global risk-on trading session in which investors ditched the greenback, a safe-harbor asset class, and scrambled for higher-yielding currencies and equities.
Meanwhile, the Institute for Supply Management's service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers' index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
Analysts had expected the index to rise 52.0.
The service sector employs the bulk of the U.S. labor market.
The dollar also sank against other currencies on sentiment that despite the strong jobs numbers out of the U.S., intervention from the Federal Reserve is still a real possibility.
The Federal Reserve has said it will remain on the sidelines but poised to stimulate the economy as needed.
Investors traded on sentiment that one solid jobs report doesn't signal an end to tepid recovery and a beginning of more robust expansion, which leaves the door open to Fed stimulus measures.
The overall unemployment rate rose to 8.3% in July from 8.2% despite the uptick in hiring, reflecting a view that an underlying weakness in the economy still persists.
Federal Reserve stimulus tools such as bond purchases from banks tend to weaken the dollar, and talk such easing is still possible sent the greenback falling even further against global currencies.
Elsewhere, eurozone retail sales beat expectations as well, rising 0.1% in June after gaining 0.8% in May.
Markets were expecting a decline of 0.1%.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.83% at 1.5642.
The dollar was up against the yen, with USD/JPY trading up 0.45% at 78.59, and down against the Swiss franc, with USD/CHF trading down 1.52% at 0.9711.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.65% at 1.0008, AUD/USD up 0.86% at 1.0554 and NZD/USD up 0.99% at 0.8183.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.14% at 82.46.
Improving service-sector data out of the U.S. also sent the greenback falling.
In Asian trading on Friday, EUR/USD was up 1.62% at 1.2378.
The U.S. economy added a net 163,000 net nonfarm payrolls in July, according to the Bureau of Labor Statistics, far more than market expectations for a gain of 100,000 and well above June's revised figure of 64,000.
The news sparked a global risk-on trading session in which investors ditched the greenback, a safe-harbor asset class, and scrambled for higher-yielding currencies and equities.
Meanwhile, the Institute for Supply Management's service-sector index outpaced expectations last month as well.
In a report, the Institute for Supply Management said that its non-manufacturing purchasing managers' index rose to a seasonally adjusted annual rate of 52.6 in July, up from 52.1 in June.
Analysts had expected the index to rise 52.0.
The service sector employs the bulk of the U.S. labor market.
The dollar also sank against other currencies on sentiment that despite the strong jobs numbers out of the U.S., intervention from the Federal Reserve is still a real possibility.
The Federal Reserve has said it will remain on the sidelines but poised to stimulate the economy as needed.
Investors traded on sentiment that one solid jobs report doesn't signal an end to tepid recovery and a beginning of more robust expansion, which leaves the door open to Fed stimulus measures.
The overall unemployment rate rose to 8.3% in July from 8.2% despite the uptick in hiring, reflecting a view that an underlying weakness in the economy still persists.
Federal Reserve stimulus tools such as bond purchases from banks tend to weaken the dollar, and talk such easing is still possible sent the greenback falling even further against global currencies.
Elsewhere, eurozone retail sales beat expectations as well, rising 0.1% in June after gaining 0.8% in May.
Markets were expecting a decline of 0.1%.
The greenback, meanwhile, was down against the pound, with GBP/USD trading up 0.83% at 1.5642.
The dollar was up against the yen, with USD/JPY trading up 0.45% at 78.59, and down against the Swiss franc, with USD/CHF trading down 1.52% at 0.9711.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.65% at 1.0008, AUD/USD up 0.86% at 1.0554 and NZD/USD up 0.99% at 0.8183.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.14% at 82.46.