Forex - Dollar regains strength as selloff from jobs data wanes

Published 10/05/2012, 03:12 PM
Updated 10/05/2012, 03:14 PM
Investing.com - The dollar traded mixed to higher against most major currencies on Friday, regaining strength after softening when U.S. unemployment rates defied expectations and fell in September.

In U.S. trading on Friday, EUR/USD was up 0.12% at 1.3032.

The U.S. unemployment rate fell to 7.8% percent in September from 8.1% in August, the Bureau of Labor Statistics reported earlier Friday.

Markets were expecting the rate to rise to 8.2%.

Employers added a net 114,000 nonfarm payrolls in September, while households reported that total employment rose by 873,000 in September following three months of little change.

Analysts were expecting the economy to pick up a net 113,000 nonfarm payrolls.

The number of unemployed Americans stands at 12.1 million, the fewest since January 2009.

More workers took on part-time jobs last month, which accounted for the drop in the headline unemployment rate.

The dollar weakened initially, as a falling headline inflation rate sparked a risk-on trading session that sent stocks and higher-yielding currencies rising at the greenback's expense.

While the number of number of new jobs rose, the number was not strong enough to suggest fundamental improvements in the labor market are taking place, which gave the dollar support.

The greenback, meanwhile, was up against the pound, with GBP/USD trading down 0.30% at 1.6143.

The dollar was up against the yen, with USD/JPY trading up 0.26% at 78.68, and down against the Swiss franc, with USD/CHF trading down 0.05% at 0.9300.

The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down  0.13% at 0.9791, AUD/USD down 0.68% at 1.0170 and NZD/USD trading down 0.59% at 0.8169.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.05% at 79.46.










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