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Forex - U.S. Dollar Lower After Jobs Data

Published 12/07/2018, 10:14 AM
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Investing.com - The U.S. dollar was lower on Friday as the latest jobs report lowered the chances that the Federal Reserve will raise rates in 2019.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.08% to 96.68 as of 10:14 AM ET (15:14 GMT).

Nonfarm payrolls rose by 155,000 in November, which was lower than expected but still consistent with a strengthening job market. The data puts less pressure on the Fed to raise rates.

The Wall Street Journal reported on Thursday that the Fed is likely to consider a wait-and-see approach, after hiking rates at its next meeting in December, and does not know when its next rate hike will be.

The jobs report follows comments from Fed Chairman Jerome Powell last month that signaled the central bank's three-year tightening cycle was drawing to a close. Powell said the bank's policy rate was "just below" estimates of a level that neither cools nor boosts a healthy economy.

The dollar was higher against the safe-heaven Japanese yen, with USD/JPY inching up 0.04% to 112.72.

The pound was lower as the UK braces for a vote on the Brexit draft plan on Dec. 11. GBP/USD fell 0.25% to 1.2751.

The euro was higher, with EUR/USD up 0.06% to 1.1384.

Elsewhere, NZD/USD was flat at 0.6876, while AUD/USD was down 0.01% to 0.7232. The Canadian dollar was also lower, with USD/CAD falling 0.80% to 1.3276.

-- Reuters contributed to this report.

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