Dollar Falls against Major Currencies after U.S. Economy Added Fewer Jobs than Expected

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Dollar Falls against Major Currencies after U.S. Economy Added Fewer Jobs than Expected
Dollar Falls against Major Currencies after U.S. Economy Added Fewer Jobs than Expected

Dollar Falls against Major Currencies after U.S. Economy Added Fewer Jobs than Expected

By the end of Friday, the dollar showed no signs of improvement and slumped against the major currencies due to weak U.S. December jobs data. The official data reflects a disconcerting 74,000 jobs addition in December, when the expected number was 196,000. Even in the previous month, the U.S. economy added 241,000 jobs which is very low compared to December’s addition.

On Friday, the pair EUR/USD was up 0.43% at 1.667.

A report by the Labor Department reflected the U.S. unemployment rate falling to 6.7% in December from 7.0% in November. Analysts had expected the rate to remain unchanged last month. It is the lowest employment rate recorded since October 2008.

The fall however could also have been caused due to the recent bad weather in the USA, which saw employment indicators dropping, especially in the construction and transportation sector. This can also be testified as a fact because, during the same time, leisure and hospitality payrolls saw a marginal rise.

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The other currencies that saw a decent rise against the greenback was the yen, with the USD/JPY falling 0.82% to 103.99 at the end of the U.S. session this past Friday.

Meanwhile, the euro seemed to have recovered its position against the dollar, with the EUR/USD rising to a decent 1.3670 – a 0.46% increase. The currency was also pushed further when France reportedly saw a decent climb in its industrial production rate – a 1.3% rise, which was speculated to be around 0.4% after facing a 0.5% decline the previous month.

However, UK pound couldn’t take much benefits out of greenback’s poor performance; thanks to its flat manufacturing production in November, and by rising only 0.2% against the 0.4% rise expectations. At the end of Friday, the GBP/USD was at 1.6478 after showing a mere 0.01% rise.

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To contact the reporter of this story: Jonathan Millet at john@forexminute.com