Investing.com - The dollar weakened against most major
currencies on Friday after a less-than-stellar U.S. jobs report
sent investors selling the currency for profits.
In U.S. trading on Friday, EUR/USD was up 0.27% at 1.3426.
The Labor Department reported earlier that the U.S. economy
added 209,000 jobs in July, missing expectations for an increase of
233,000. The number of jobs added in June was revised up to a
298,000 gain from a previously estimated rise of 288,000.
The report also showed that the U.S. unemployment rate ticked up
to 6.2% last month from 6.1% in June. Analysts had expected the
rate to remain unchanged in July.
Investors sold the dollar for profits upon release of data to
reexamine how much time will past from when the Federal Reserve
will wind down its bond-buying stimulus program and when it will
begin hiking benchmark interest rates.
While the economy is improving, the Fed noted in its July
statement on monetary policy this week that slackness remains in
the labor market.
Elsewhere, the revised Thomson Reuters/University of Michigan
consumer sentiment index rose to 81.8 in July from 81.3 in June,
missing expectations for a reading of 82.0, which added to Friday's
Separately in the U.S., the Institute of Supply Management
reported that the U.S. manufacturing purchasing managers' index
rose to 57.1 in July from 55.3 in June, beating expectations for an
increase to 56.0, though investors avoided the greenback due to
jobs and sentiments reports.
Meanwhile in Europe, the Markit research group said that
Germany's manufacturing purchasing managers' index fell to 52.4
last month from 52.9 in June. Analysts had expected the index to
For the entire euro zone, Markit said the manufacturing PMI
ticked down to 51.8 in July, from a reading of 51.9 the previous
month. Analysts had also expected the index to remain
Meanwhile in Asia, official data showed that China's
manufacturing PMI rose to 51.7 from 51.0 in July, beating market
expectations for a 51.4 reading.
Still, China's HSBC final manufacturing PMI ticked down to 51.7
last month from 52.0. Analysts had expected the index to remain
unchanged, which sent investors flocking to safe-haven positions in
gold, which tends to trade inversely with the dollar.
Elsewhere, Argentina defaulted on its debts this week, which
sparked fears markets could roil on the event, while concerns that
tensions in Ukraine and Gaza will dampen global recovery also
boosted demand for the yellow metal.
The dollar was down against the yen, with USD/JPY down 0.20% at
102.59, and down against the Swiss franc, with USD/CHF down 0.29%
The greenback was up against the pound, with GBP/USD down 0.35%
Markit Economics reported earlier that its U.K. manufacturing
purchasing managers' index fell to 55.4 last month, down from 57.5
in June. Analysts had expected the index to slip to 57.2 in July,
and numbers weakened the pound.
A day earlier on Thursday, the Nationwide Building Society
reported that property values rose 0.1% in July from June, missing
market calls for a 0.5% reading, which softened the pound.
Property values rose 10.6% on year in July, below expectations
for a reading of 11.3%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD up 0.16% at 1.0921, AUD/USD up 0.20%
at 0.9313 and NZD/USD up 0.04% at 0.8504.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.16% at 81.41.
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