Forex - Dollar index slips lower but still close to 14-month peak

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Investing.com - The dollar slipped lower against a basket of other major currencies on Friday, after the release of lower than expected jobs data, but the greenback still remained close to a 14-month peak hit earlier in the session.

In a report, the Department of Labor said that the U.S. economy added 142,000 jobs in August, less than the expected increase of 225,000. The number of jobs added in July was revised to a 212,000 increase from a previously estimated rise of 209,000.

The report also showed that the U.S. unemployment rate ticked down to 6.1% last month, from 6.2%, in line with expectations.

The data came a day after the ADP nonfarm payrolls report showed that the private sector added less jobs than expected in August, while a separate report showed that the number of people who filed for unemployment assistance in the U.S. last week rose more than anticipated.

EUR/USD edged up 0.15% to 1.2965 but remained within close distance of Thursday's 14-month low of 1.2918.

The euro fell sharply after the European Central Bank cut its benchmark interest rate to a record-low 0.05% from 0.15%, surprising most market analysts who had expected no change.

In addition, ECB President Mario Draghi said the bank will begin an asset-backed securities program, to purchase non-financial assets, including covered bonds.

Earlier Friday, official data showed that German industrial production rose 1.9% in July, beating expectations for an uptick of 0.3%, after a revised 0.4% increase in June.

GBP/USD held steady, near seven-month lows, at 1.6323 as uncertainty over the outcome of a vote on Scottish independence due to take place later this month continued to weigh on sterling.

USD/CHF edged 0.12% lower to 0.9306, pulling away from one-year highs. USD/JPY retreated 0.42%, off six-year highs, at 104.82.

AUD/USD rose 0.33% to trade at 0.9379, while NZD/USD added 0.288% to 0.8329. USD/CAD edged up 0.12% to 1.0887, after official data showed that the number of employed people in Canada declined by 11,000 last month, confounding expectations for an increase of 10,000.

The report also showed that Canada's unemployment rate remained unchanged at 7.0% in August, in line with expectations.

Separately, Canada's Ivey purchasing managers' index ticked down to 50.9 last month, from a reading of 54.1, compared to expectations for a rise to 55.0.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, slipped 0.12% to 83.71, still close to the session high of 83.96, the highest level since July 2013.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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