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Dollar remains broadly lower after U.S. economic reports

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Investing.com - The U.S. dollar remained broadly against the other major currencies on Friday, as demand for the greenback weakened after the release of downbeat U.S. data sparked fresh concerns over the strength of the U.S. economic recovery.

During U.S. morning trade, the dollar was lower against the euro, with EUR/USD climbing 0.48% to 1.3271.

The greenback weakened broadly after data showed that U.S. factory orders rose less-than-expected in June, increasing 1.5% after a 3% rise the previous month. Analysts had expected factory orders to rise 2.3% in June.

Separately, the Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, disappointing expectations for a 184,000, after an increase of 188,000 the previous month.

The private sector added 161,000 jobs last month, less than the expected 189,000 increase, after 196,000 jobs were created in June.

However, the report also showed that the U.S. unemployment rate ticked down to 7.4% in July, from 7.6% the previous month. Analysts had expected the unemployment rate to slip to 7.5% last month.

The data came amid growing uncertainty over the future of the Federal Reserve's stimulus program, after the central bank said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and gave no hint of plans to pare its bond-buying program.

In the euro zone, official data showed that the number of unemployed people in Spain fell for the fifth consecutive month in July, declining by 64,900 after a 127,200 fall the previous month.

Analysts had expected the number of unemployed people to fall by 80,000 last month.

The greenback was also lower against the pound, with GBP/USD jumping 0.83% to 1.5244.

Markit research group said the U.K. construction purchasing managers' index rose to 57.0 in July, from a reading of 51.0 the previous month, blowing past expectations for a rise to 51.5 and expanding at the fastest pace since July 2010.

A separate report showed that house price inflation in the U.K. rose 0.8% last month, more than the expected 0.4% gain, after an increase of 0.3% in June.

Elsewhere, the greenback was lower against the yen and the Swiss franc, with USD/JPY sliding 0.44% to trade at 99.10, and with USD/CHF shedding 0.66% to 0.9304.

In Switzerland, data showed that the SVME PMI rose to 57.4 in July, from a reading of 51.9 the previous month, the highest level since June 2011.

Analysts had expected the index to rise to 52.5 last month.

The greenback was higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD adding 0.21% to 1.0367, AUD/USD falling 0.21% to 0.8907 and NZD/USD declining 0.52% to 0.7851.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% to 82.07.

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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 Nasdaq, Inc.


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

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