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Dollar drops in thin holiday trade after disappointing U.S. jobs data
April 3, 2015 / 12:57 PM / 3 years ago

Dollar drops in thin holiday trade after disappointing U.S. jobs data

NEW YORK, April 3 (Reuters) - The dollar tumbled on Friday after a significantly weaker-than-expected U.S. jobs report that will increase speculation over whether the U.S. Federal Reserve will hold off on tightening monetary policy for longer than expected.

The euro immediately spiked to a 1 percent gain following the report, touching a one week high of $1.10050 on the EBS trading platform. Trading volumes are very thin owing to the Easter holiday that has much of Europe closed and skeletal staffing at U.S. banks.

U.S. employers added the fewest jobs in more than a year in March amid signs the economy was starting to take strain from the rally that has lifted the dollar to multi-year highs. Non-farm payrolls rose by 126,000 last month, the smallest gain since December 2013, and well under the 245,000 economists had forecast. The unemployment rate held at a 6-1/2 year low of 5.5 percent.

“I‘m not pushing the panic button yet. It is still a Q1 number. I don’t think the Fed will either. We’re not getting a clean read on the economy yet. We had a bad winter for most of the northeast and any clean read for the economy will come in the next couple of months,” said Win Thin, currency strategist at Brown Brothers Harriman in New York. (Reporting By Daniel Bases; Editing by Chizu Nomiyama)

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