The dollar fell sharply after the job data lost hope
The US dollar dropped sharply against colleagues on Friday after the important monthly work data showed that American entrepreneurs employ fewer workers than expected, which is likely to ensure the slaughtering of the Federal Reserve interest rate.
The Department of Manpower Data shows that non -agricultural payroll increased only 22,000 jobs last month, far from 75,000 positions estimated by economists surveyed by Reuters.
The dollar fell on all boards after the report. It weakened 0.99% to 147.03 against Japanese Yen, but still on the route for the second week in a row. Greenback fell 0.99% to 0.7998 against Swiss francs and was ready for the loss of the fourth week in a row to the currency.
“The data provides evidence of what is feared, that is what the company experienced throughout the year because changes in trade policies have added costs when it comes to tariffs,” said Juan Perez, Director of Trade at Monex USA in Washington. “These costs can only be absorbed so long and what is manifested is that the company struggles to employ.”
Euro rose 0.79% at $ 1,174425 and was set to get a weekly profit against the dollar. The dollar index dropped 0.70% to 97.54 and was determined to release 0.23% this week.
US treasury results fall. The 2-year notes that are sensitive to the rate dropped 11.2 basis points to 3.48%. The results on the benchmark of the US 10 -year record dropped 10.4 basis points to 4.072%.
The main index of Wall Street, including S&P 500 (.Spx), Nasdaq (.IXIC), and Dow (.DJI), all of them trade higher.
Traders now give a price of 12% of the opportunity to cut 50-Basis points at the next FED meeting at the end of this month, while the probability of the 25-Basis point slaughter is almost 88%, according to the Fedwatch CME tool.
“This is clearly not a good story for the US dollar and this is not a good story for the United States because what is really determined by today is that we experience a very serious stagflation,” Perez added.
Pound rises versus a weaker dollar after the news on Friday that British Prime Minister Angela Rayner resigned, after recognizing paying a lack of property tax in a new home, in a new blow to his boss, Prime Minister Keir Starmer.
It strengthens 0.78% to $ 1,35420 and is on the path to get 0.3% for this week.
Gold reached the highest record of $ 3,595.30 because the dollar weakened. Gold spots rose 1.37% to $ 3,593.91 per ounce.
(This story has been repeated to delete foreign words in the last point)
Source: Reuters (reporting by Chibuike Oguh in New York; Additional Reporting by Lucy Raitano; Editing by Philippa Fletcher and Alex Richardson)
