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Forex- Dollar Rises Despite Fall in Jobs, Service Sector Data

Published 01/05/2018, 11:15 AM
The U.S. dollar rallied on Friday.
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Investing.com - The dollar rose back from earlier losses against other major currencies on Friday, after investors digested data showing that the U.S. economy added less jobs than expected last month.

The U.S. Department of Labor reported on Friday that the economy added 148,000 jobs in December, disappointing expectations for an increase of 185,000. The unemployment rate remained unchanged at 4.1%, as expected.

The report also showed that U.S. average hourly earnings rose 0.3% last month, in line with projections. Meanwhile another report showed that service sector activity in the U.S. fell more than expected in December. The Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) decreased to 55.9 in December from the prior month’s reading of 57.4.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.13% to 91.72 by 11:15 AM ET (16:15 GMT), off session highs of 91.82.

Elsewhere, the euro fell, with EUR/USD down 0.23% to 1.2039, while sterling inched down from earlier increases, rising only 0.11% to 1.3563.

Data earlier showed that euro zone inflation fell in line with expectations in December, while another report showed that German retail sales increased more than expected in November.

The yen remained weaker, with USD/JPY up 0.40% at 113.20, while USD/CHF rose 0.12% to 0.9751.

Elsewhere, the Australian dollar was almost unchanged, with AUD/USD falling 0.09% to 0.7857, while NZD/USD advanced 0.14% to 0.7166.

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