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The greenback tumbled across the board to 9-week lows against its peers on Friday after U.S. jobs report came in lower than market forecast by the most on record, triggering concerns that recent strong recovery in the economy may be sputtering and the Fed will continue its loose monetary policy. The benchmark U.S. 10-year yield dropped to 1.469%, the lowest since March 4 after the jobs report but later earsed intra-day losses and closed arounsd 1.5788%.
Reuters reported U.S. employers hired far fewer workers than expected in April, likely frustrated by labor shortages, leaving them scrambling to met booming demand as the economy reopens amid rapidly improving public health and massive financial help from the government.
Nonfarm payrolls increased by only 266,000 jobs last month after rising by 770,000 in March, the Labor Department said in its closely watched employment report on Friday. Economists polled by Reuters had forecast payrolls advancing by 978,000 jobs. The unemployment rate rose to 6.1% in April from 6.0% in March. The jobless rate has been understated by people misclassifying themselves as being “employed but absent from work.” Millions of Americans remain out of work and many have permanently lost jobs because of the pandemic.
Versus the Japanese yen, the dollar initially rebounded from 108.94 to 109.18 in Asia and then traded broadly sideways in Europe. Price met renewed selling at 109.28 at New York open and tumbled to session lows of 108.35 after releae of dismal U.S. jobs report. Price staged a short-covering rebound to 108.88 in tandem with U.S. yields and last traded at 108.60 near the close.
The single currency traded broadly sideways in Asia and rebounded from 1.2054 at European open to 1.2090 before retreating to 1.2059. The pair then found renewed buying and jumped to 1.2145 in post-NFP. Despite a brief pullback to 1.2103, price later rallied to a 9-week peak of 1.2171 near New York close.
The British pound initially climbed from 1.3884 in Australia to 1.3928 in European morning before retreating to 1.3890 at New York open. Cable then erased intra-day losses and jumped to 1.3971 after downbeat U.S. jobs report. Despite a brief pullback to 1.3972, renewed usd’s weakness sent price to a 2-1/2 week peak of 1.4005 near the close.
Data to be released this week :
Australia NAB business conditions, NAB business confidence, retail sales, U.K. Halifax house prices, EU Sentix index, Canada leading index on Monday.
U.K. BRC retail sales, Japan all household spending, China PPI, CPI, Italy industrial output, Germany ZEW economic sentiment, current conditions, EU ZEW survey expectation, Canada leading index, U.S. redbook, JOLTS job openings on Tuesday.
New Zealand retail sales, Australia Westpac consumer sentiment, Japan coincident index, leading indicator, Germany CPI, HICP, U.K. GDP, industrial output, manufacturing output, construction output, trade balance, GDP, NIESR GDP, France CPI, EU industrial production, US MBA mortgage, CPI, Federal budget on Thursday.
New Zealand manufacturing PMI, U.S. import prices, export prices, retail sales, industrial production, capacity utilization, manufacturing output, business inventories, U. Mich. sentiment, Canada manufacturing sales, wholesales trade on Friday.