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Dollar falls broadly after U.S. payrolls miss street forecasts
The greenback erased intra-day gains made in Asia and European morning and fell across the board at New York open after U.S. non-farm payrolls missed forecast. Fall in U.S. Treasury yields and rise in U.S. stocks also contributed to dollar’s broad-based weakness.
Reuters reported nonfarm payrolls increased by 559,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Data for April was revised slightly higher to show payrolls rising by 278,000 jobs instead of 266,000 as previously reported. Economists polled by Reuters had forecast 650,000 jobs created in May. The unemployment rate fell to 5.8% from 6.1% in April. The jobless rate has been understated by people misclassifying themselves as being “employed but absent from work.”
Versus the Japanese yen, although dollar briefly gained to a fresh near 2-month high of 110.33 in Australia, price met renewed selling and fell to 110.15 in Asian morning. Intra-day decline accelerated at New York open after release of soft U.S. jobs report as well as selloff in U.S. Treasury yields and tumbled to session lows of 109.37 before staging a minor recovery. Price last traded at 109.49 near the close.
Although the single currency recovered to 1.2133 in Australia, price fell to a fresh near 3-week low of 1.2105 at European open. However, the pair jumped in New York open on soft U.S. jobs data and hit session highs of 1.2185 before easing back to 1.2161 on profit-taking.
The British pound also fell in tandem with euro from 1.4111 in Australia to a 2-week low of 1.4083 in Asia. However, cable then rebounded to 1.4131 in Europe on cross-buying in sterling and then jumped to session highs of 1.4200 in post U.S. NFP New York before retreating to 1.4154 on profit-taking near the close.
Data to be released today :
New Zealand market holiday, Australia AIG services index, ANZ job advertisements, China exports, imports, trade balance, Japan coincident index, leading indicator, Swiss unemployment rate, CPI, Germany industrial orders, UK Halifax house prices, and EU Sentix index on Monday.
UK BRC retail sales, Japan current account, trade balance, GDP, Economy Watchers outlook, Economy Watchers confidence, Australia NAB business conditions, NAB business confidence, Germany industrial output, ZEW economic sentiment, ZEW current conditions, France current account, trade balance, imports, exports, Italy retail sales, EU employment change, GDP, ZEW survey expectations, Canada leading index, trade balance, exports, imports, and U.S. trade balance, redbook, JOLTS job openings on Tuesday.
New Zealand manufacturing sales, Australia consumer sentiment, China PPI, CPI, Japan machine tool orders, Germany exports, imports, trade balance, current account, U.S. MBA mortgage applications, wholesale inventories, wholesale sales, and Canada Bank of Canada interest rate decision on Wednesday.
UK RICS housing price balance, Japan corporate goods price index, Australia consumer inflation expectations, France non-farm payrolls, industrial output, Italy industrial output, EU ECB refinancing rate, ECB deposit rate, and U.S. core CPI, CPI, real weekly earnings, initial jobless claims, continued jobless claims, Federal budget on Thursday.
New Zealand manufacturing PMI, retail sales, UK GDP, industrial output, manufacturing output, construction output, trade balance, NIESR GDP estimate, Canada capacity utilization, and U.S. University of Michigan sentiment on Friday.