October 4, 2019 / 1:48 PM / 18 days ago

FOREX-Dollar rises after U.S. jobs come out better than worst expectations

    * U.S. jobs weaker than expected, but solid overall
    * Rate futures pare bets on Fed easing at two upcoming meetings
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Recasts, adds U.S. jobs data, new comment, FX table, updates prices, changes byline, dateline; previous
LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Oct 4 (Reuters) - The dollar rose on Friday after three straight days of losses, as
investors took comfort in a U.S. non-farm payrolls number which, while below the consensus forecast, was
not as bad as the market initially feared.
    The greenback hit session highs against the yen and euro following the jobs report, after trading
lower for most of the session.
    Data showed that U.S. nonfarm payrolls increased by 136,000 jobs last month. August data was revised
to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by
Reuters had forecast payrolls would increase by 145,000 jobs in September.
    The unemployment rate dropped to a near 50-year low of 3.5%.
    "Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse.
It's probably just right for the market and not as dire as many people expected," said John Velis, global
macro strategist, at BNY Mellon in New York.
    "It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's
not strong enough that it's going to take out this additional Fed easing that has been priced into the
curve the last few days."
    A drop in U.S. unemployment in September pushed traders of U.S. short-term interest rate futures on
Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings.
    The jobs data was a big relief to dollar bulls after two weak reports that heightened U.S. recession
fears. 
    On Thursday, a survey from the U.S. Institute for Supply Management (ISM) showed its non-manufacturing
activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August.

    The non-manufacturing data came on the heels of ISM's survey on Tuesday on manufacturing that showed
activity plunging to more than 10-year lows.
    In morning trading, the dollar index was up 0.1% at 98.933, rising slightly against the yen to
106.98 yen.
    The euro was modestly higher though versus the dollar at $1.0973.
    Elsewhere, the Australian dollar and the New Zealand dollar were off their highs
after the U.S. report.  
    ========================================================
    Currency bid prices at 9:30AM (1330 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.0969        $1.0964     +0.05%         -4.36%      +1.0997     +1.0958
 Dollar/Yen       JPY=        106.9500       106.9000    +0.05%         -3.00%      +107.1200   +106.6000
 Euro/Yen         EURJPY=     117.36         117.20      +0.14%         -7.02%      +117.4600   +117.0900
 Dollar/Swiss     CHF=        0.9947         0.9991      -0.44%         +1.36%      +1.0007     +0.9930
 Sterling/Dollar  GBP=        1.2300         1.2328      -0.23%         -3.58%      +1.2356     +1.2282
 Dollar/Canadian  CAD=        1.3302         1.3335      -0.25%         -2.46%      +1.3339     +1.3299
 Australian/Doll  AUD=        0.6762         0.6741      +0.31%         -4.06%      +0.6767     +0.6739
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0913         1.0951      -0.35%         -3.03%      +1.0977     +1.0910
 Euro/Sterling    EURGBP=     0.8917         0.8889      +0.31%         -0.75%      +0.8925     +0.8881
 NZ               NZD=        0.6326         0.6300      +0.41%         -5.82%      +0.6336     +0.6297
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.1018         9.1234      -0.24%         +5.36%      +9.1328     +9.0911
 Euro/Norway      EURNOK=     9.9867         10.0084     -0.22%         +0.81%      +10.0195    +9.9807
 Dollar/Sweden    SEK=        9.8515         9.8683      -0.10%         +9.90%      +9.8720     +9.8334
 Euro/Sweden      EURSEK=     10.8096        10.8205     -0.10%         +5.32%      +10.8247    +10.8030
 
    
 (Reporting by Saikat Chatterjee;
Editing by Peter Graff and Chizu Nomiyama)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below