Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Slips as U.S. Jobs Report Tempers Rate Hike Bets

Published 12/03/2018, 09:12
Updated 12/03/2018, 09:17
© Reuters.  Dollar slips as U.S. jobs report tempers rate hike bets

© Reuters. Dollar slips as U.S. jobs report tempers rate hike bets

Investing.com - The dollar slipped against a currency basket on Monday after the latest U.S. jobs report showed that while jobs growth remained strong, boosting risk appetite, wage growth slowed, tempering expectations for a faster pace of rate hikes this year.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 89.94 by 04:54 AM ET (08:54 AM GMT), down 0.18% for the day.

The Labor Department reported Friday that the U.S. economy added 313,000 jobs last month, but average hourly earnings rose by just 0.1% in February.

The strong jobs growth boosted global risk appetite, while the slowdown in wage growth dampened expectations for four rate hikes by the Federal Reserve this year, a negative for the dollar, which tends to become more attractive to yield-seeking investors when borrowing costs rise.

The euro pushed higher, with EUR/USD rising 0.18% to 1.2329.

Gains in the single currency were held in check after European Central Bank President Mario Draghi downplayed a decision to drop the easing bias from last week’s rate statement and warned that increasing protectionism posed a threat to the outlook for growth in the euro area.

Sterling also gained ground against the greenback, with USD/GBP climbing 0.17% to 1.3877.

Against the yen, the dollar was lower, with USD/JPY down 0.24% to 106.54.

Demand for the yen was boosted amid concerns over a growing cronyism scandal linked to the Japanese prime minister and his wife involving the sale of public land.

The safe haven yen tends to rise in times of market uncertainty.

The risk sensitive Australian and New Zealand dollars were also higher, with AUD/USD up 0.19% to 0.7862 and NZD/USD adding 0.43% to trade at 0.7310.

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.