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Dollar remains lower after weak U.S. jobs data

Published 05/06/2016, 08:39 AM
Dollar holds onto losses as U.S. jobs data disappoints
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Investing.com - The dollar remained lower against the other major currencies on Friday, after data showed that the U.S. economy created less jobs than expected last month, sparking concerns over the strength of the job market.

USD/JPY slid 0.62% to 106.58.

The U.S. Labor Department said the economy added 160.000 jobs in April, disappointing expectations for an increase of 202.000. The number of jobs rose by 208.000 in March, whose figure was revised from a previously estimated 215.000 rise.

The report also showed that the U.S. unemployment rate held at 5.0% last month, in line with expectations.

Average hourly earnings in the U.S. rose by 0.3% in April, in line with expectations and after a revised 0.2% gain the previous month.

The data added to concerns over the U.S. job market after payroll processing firm ADP said on Wednesday that non-farm private employment rose by 156,000 last month, missing expectations for an increase of 196,000.

On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 29 increased by 17,000 to 274,000, compared to expectations for a 3,000 rise.

EUR/USD gained 0.41% to 1.1455.

The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.15% at 1.4504 and with USD/CHF slipping 0.12% to 0.9664.

The Australian and New Zealand dollars were weaker, with AUD/USD down 1.34% at 0.7365 and with NZD/USD dropping 0.51% to 0.6849.

Earlier Friday, the Reserve Bank of Australia said in its monthly policy statement that core inflation is unlikely to reach the bottom of its target this year.

The central bank also left estimated economic growth at 2.5% to 3.5% for 2016 and 2017 and predicted unemployment will remain around the current 5.7%.

Elsewhere, USD/CAD rose 0.37% at a fresh three-week high of 1.2911.

Statistics Canada reported on Friday that the number of employed people fell by 2,100 in April, confounding expectations for a rise of 1,000 and after an increase of 40,600 the previous month.

Canada’s unemployment rate remained unchanged at 7.1% last month, beating expectations for an uptick to 7.2%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.20% at 93.53.

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