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CORRECTED-FOREX-Dollar gains broadly after job data, ECB remarks

Thu Jul 3, 2008 11:20pm IST
 
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* Dollar rises broadly after U.S. jobs data

* ECB hikes rates to 4.25 pct as expected

* Trichet remarks on rates less aggressive than expected (Recasts; updates prices)

NEW YORK, July 3 (Reuters) - The dollar rallied on Thursday after payroll data suggested the U.S. job market and economy are not as dire as many investors had feared, while the European Central Bank president struck a less aggressive tone on prospects for interest rate hikes.

Demand for the greenback started to rise after the U.S. jobs report for June landed largely as forecast and nowhere close to a scenario feared by investors.

"The unemployment number really didn't break the dollar's back. The market was so bearish that I thought we would see a minus-100 (thousand job-loss) print, so this is moderately good news," said Boris Schlossberg, senior currency strategist, at DailyFX.com in New York.

Payrolls fell 62,000, the Labor Department said, the sixth straight month of declines and the longest losing streak for the labor market since 2002. For details, see [ID:nN03278198].

At the same time the jobs data was released, ECB President Jean-Claude Trichet said the current level of euro zone interest rates would help achieve the bank's price stability goal. The ECB earlier raised its key rate by a widely expected quarter percentage point to 4.25 percent.  Continued...

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Symbol Bid Ask
BRENT CRUDE $0.00 $0.00
MINI GOLD $800.50 $810.00
MINI SILVER $12.11 $12.27