The dollar index declines but still hovers around 14-month peak
US dollar index made a brief decline but still hovered around its 14-month peak; the reason for the USD slight correction was the poor August nonfarm payroll report.
The US Labor Department report today indicated that the US economy had added 142,000 jobs in August, less than the expected 225,000. The 209,000 jobs added in July were revised up to 212,000. According to the report, the US jobless rate ticked down to 6.1 percent last month from 6.2 percent in July, meeting expectations.
The EUR/USD rose to a session high of 1.2988 to retreat back to 1.2955 as of 6:05 pm GMT. The common currency still hovered around the Thursday 14-month low of 1.2918, however. Yesterday, the euro plummeted following the cutting of the ECB benchmark interest rate, from 0.15 percent to a record-low of 0.05 percent, albeit most market analysts did not expect any change. Mario Draghi also announced the bank would commence a program for the purchase of asset-backed securities.
Earlier on Friday, according to official data German industrial production rose by 1.9 percent in July, after a revised 0.4 percent increase in June, surpassing expectations for a 0.3 percent rise.
The GBP/USD was steady at 1.6323, near seven-month lows, with uncertainty setting in regarding the result of a Scottish independence vote due later this month and weighing on the sterling.
The USD/CHF shed 0.12 percent, to 0.9306, down from one-year highs. The USD/JPY slid by 0.42 percent, to 104.82, down from six-year highs.
The AUD/USD climbed by 0.33 percent, trading at 0.9379. The NZD/USD increased by 0.29 percent, to 0.8329.
The USD/CAD climbed by 0.12 percent to 1.0898, after official data indicated Canada’s newly employed people’s number slumped by 11,000 last month, missing expectations of a 10,000 increase. According to the report, Canada’s jobless rate stayed the same, at 7.0 percent in August, meeting expectations. Canada’s PMI declined to 50.9 last month, down from 54.1.
The US Dollar Index, reflecting the greenback’s performance versus a basket of six other major currencies, shed 0.12 percent, to 83.71, still remaining in the vicinity of 83.96, a session high and the highest since July 2013.
