Dollar ends lower on mixed U.S. jobs report: Nov 7, 2016

Market Review - 07/11/2016   01:32GMT  

Dollar ends lower on mixed U.S. jobs report

The greenback ended the day lower on Friday after the release of mixed U.S. jobs report as the uncertainty surrounding U.S. Presidential election continues to weigh on the currency. 

The U.S. Labor Department said the economy added 161K jobs in October, disappointing expectations for an increase of 175K. However, September's figure was revised to a 191K gain from a previously estimated rise of 156K. The unemployment rate ticked down to 4.9% last month from 5.0% in September, in line with expectations.  

Data also showed that U.S. average hourly earnings rose 0.4% in October, exceeding expectations for an uptick of 0.3%. 

Versus the Japanese yen, although the greenback rose fm Asian low at 102.83 to an intra-day high at 103.36 ahead of European open, price retreated to 102.86 ahead of New York open. Despite a brief rebound to 103.29 after the release of mixed U.S. jobs report. Later, dollar briefly retreated again to 102.86 before staging a recovery in New York morning. 

The single currency remained under pressure in Asia and weakened to 1.1086 in Asia before rebounding to 1.1115 at New York open. Later, euro dropped to session low at 1.1080 after the release of U.S. jobs report, however, price pared its losses and rose to an intra-day high at 1.1143 at New York close. 

Although the British pound weakened to session low at 1.2249 ahead of European open, price pared its losses and rallied to a fresh 1-month peak at 1.2558 in New York on active cross-buying of sterling especially vs euro. 

In other news, Fed's Lockhart said 'anticipates very gradual rise in interest rates over next two years; economy on pace for roughly 2% growth this year, with job gains expected to be stable; Fed tightening not ominous for mortgage rates, which he expects to remain low by past standards; housing industry outlook is promising given demographic trends like pent-up demand among millenials; U.S. job gains in Oct were solid; calls U.S. Oct non-farm payrolls report satisfactory; does not expect recession in near term; in a new downturn, negative rates wud not be a first or second resort for the Fed.' 

On the data front, in a report, markit said that Euro Zone Services PMI fell to 52.8, from 53.5 in the preceding quarter. Analysts had expected Euro Zone Services PMI to remain unchanged at 53.5 in the last quarter. 

Data to be release this week: 

Australia AIG construction index, Germany industrial orders, Swiss CPI, U.K. Halifax house price index, Eurozone Sentix investor confidence, retail sales and U.S. employment trends on Monday. 

Australia business conditions, business confidence, China exports, imports, trade balance, Japan coincident indicator, leading indicator, machine tool orders, Swiss unemployment rate, Germany industrial output, exports, imports, trade balance, current account, France budget balance, imports, exports, U.K. industrial output, manufacturing output, business optimism, Redbook index, job opening, Canada house starts and building permits on Tuesday. 

New Zealand electronic card retail sales, Australia consumer sentiment, Japan current account, trade balance, Eco Watchers Survey, China PPI, CPI, U.K. trade balance, U.S. mortgage applications, wholesale inventories, wholesale sales on Wednesday. 

New Zealand interest rate decision, Australia consumer inflation expectation, Japan machinery orders, France industrial output, non-farm payrolls, Italy industrial output, U.K. house price balance, U.S. initial jobless claims, Federal budget and Canada new housing price on Thursday. 

Japan corporate goods price, Germany CPI, Harmonised index of consumer prices, U.K. construction output and U.S. Reuters/Michigan consumer sentiment index on Friday.