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Forex - Dollar moves broadly lower on disappointing U.S. jobs report

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Shutterstock photo - The dollar weakened against most major currencies on Friday after official data released earlier revealed that the U.S. economy added far fewer jobs in July than markets were expecting.

In U.S. trading on Friday, EUR/USD was up 0.57% at 1.3283.

The Bureau of Labor Statistics said the U.S. economy added 162,000 jobs in July, missing expectations for an increase of around 189,000.

The report also revealed 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.

Still, the numbers dampened expectations for the Federal Reserve to begin tapering its USD85 billion monthly bond-buying program, which seeks to spur recovery by keeping long-term interest rates low, weakening the greenback in the process.

The Fed is due to meet in September to discuss policy anew, though concerns began to build that monetary authorities may wait until December to begin tapering the stimulus program and let the economy stand on its own.

Meanwhile 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, meanwhile, was down against the pound, with GBP/USD trading up 1.11% at 1.5287.

London-based Markit research group reported earlier that its U.K. construction purchasing managers' index rose to 57.0 in July from 51.0 in June, 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.

The dollar was down against the yen, with USD/JPY down 0.59% at 98.95, and down against the Swiss franc, with USD/CHF trading down 0.86% at 0.9286.

The dollar was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.41% at 1.0388, AUD/USD down 0.20% at 0.8908 and NZD/USD trading down 0.61% at 0.7844.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.52% at 82.00. - offers an extensive set of professional tools for the financial markets.

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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.

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