Dollar Harmed by Worse-Than-Expected Non-Farm Payrolls
The US dollar weakened today as non-farm payrolls came out somewhat disappointing, increasing prospects for a next round of quantitative easing by the Federal Reserve and reducing appeal of the greenback.
Non-farm employment rose by 120,000 jobs in March. That’s significantly below the market expectation of 207,000. The February reading was revised from 227,000 to 240,000. The unemployment rate managed to fall from 8.3 percent to 8.2 percent despite the slowing employment growth, even though it was expected to remain stable. Analysts say that the worse-than-expected employment data in no way guarantee that a next round of easing would be performed, but it increases the possibility of additional stimulus.
EUR/USD was up from 1.3065 to 1.3081 as of 14:36 GMT today, following the advanced to the intraday maximum of 1.3112. USD/JPY slumped from 82.32 to 81.49, while the daily minimum of 81.34 was the lowest since March 8.
If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
Earlier News About the US Dollar:
- US Dollar Index Rises Today (2012-04-05)
- US Dollar Edges Higher as Traders Wait for Fed Minutes (2012-04-03)
- US Dollar Index Declines as Cautious Optimism Makes an Appearance (2012-03-30)
- US Dollar Strengthens as Eurozone Concerns Resurface (2012-03-29)
- US Dollar Mixed as Forex Traders Consider Latest News (2012-03-27)