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Dollar remains broadly lower in quiet trade

Published 11/09/2015, 08:25 AM
Dollar still on the downside as traders lock-in gains
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Investing.com - The dollar remained broadly lower against the other major currencies in quiet trade on Monday, as trader's locked in profits from the greenback's rally to seven-month high after the release of strong U.S. employment data on Friday.

EUR/USD rose 0.32% at 1.0773, off Friday’s seven-month trough of 1.0701.

The greenback strengthened broadly after the Labor Department reported that the U.S. economy added 271,000 jobs last month, well ahead of the 180,000 expected by economists and the largest increase since December.

The unemployment rate fell to a seven-and-a-half year low of 5.0%.

The robust data paved the way for the Federal Reserve to raise interest rates at its December meeting, a move that would make the dollar more attractive to yield-seeking investors.

The jobs data came after Fed Chair Janet Yellen said that the U.S. economy was performing well, and that December would represent a “live possibility” for raising interest rates if economic data supported it.

USD/JPY added 0.28% to trade at 123.51, the highest level since August 21.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD adding 0.24% to 1.5088 and with USD/CHF shedding 0.28% to 1.0036, pulling away from Friday’s eight month highs of 1.0075.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.27% at 0.7062 and with NZD/USD gaining 0.44% to 0.6547.

Meanwhile, USD/CAD declined 0.41% to trade at 1.3251.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% at 99.03, off Friday’s highs of 99.29, the highest level since mid-April.

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