US Dollar Suffers From Terrible Nonfarm Payrolls

The US dollar fell against other major currencies, including the Great Britain pound and the Japanese yen, today after the non-farm payrolls showed that job creation in the US stalled. The currency also slipped against the euro, but later rebounded.

US non-farm payrolls showed no employment growth in August. That’s much worse than the market expectations (growth by 74,000) and the worst reading since September 2010, when employment declined by 95,000. Average hourly earnings dropped 0.1 percent, while markets counted on an increase by 0.2 percent. The poor economic report renewed speculations that the Federal Reserve needs third round of asset purchases, known as quantitative easing, to bolster the economic recovery in the United States.

The Dollar Index managed to rise 0.3 percent to 74.683 today from 74.479 yesterday. The dollar trimmed losses versus the pound and the yen, as well as rebounded versus the euro. The Standard & Poor’s 500 Index plunged as much as 2.3 percent.

GBP/USD climbed from 1.6177 to 1.6253 before trading at 1.6220 as of 19:40 GMT today. USD/JPY fell from 76.91 to 76.80 and touched low of 76.52 intraday. Meanwhile, EUR/USD tumbled from 1.4257 to 1.4199.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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4:01 AM | 0 comments

US Dollar Suffers From Terrible Nonfarm Payrolls

The US dollar fell against other major currencies, including the Great Britain pound and the Japanese yen, today after the non-farm payrolls showed that job creation in the US stalled. The currency also slipped against the euro, but later rebounded.

US non-farm payrolls showed no employment growth in August. That’s much worse than the market expectations (growth by 74,000) and the worst reading since September 2010, when employment declined by 95,000. Average hourly earnings dropped 0.1 percent, while markets counted on an increase by 0.2 percent. The poor economic report renewed speculations that the Federal Reserve needs third round of asset purchases, known as quantitative easing, to bolster the economic recovery in the United States.

The Dollar Index managed to rise 0.3 percent to 74.683 today from 74.479 yesterday. The dollar trimmed losses versus the pound and the yen, as well as rebounded versus the euro. The Standard & Poor’s 500 Index plunged as much as 2.3 percent.

GBP/USD climbed from 1.6177 to 1.6253 before trading at 1.6220 as of 19:40 GMT today. USD/JPY fell from 76.91 to 76.80 and touched low of 76.52 intraday. Meanwhile, EUR/USD tumbled from 1.4257 to 1.4199.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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4:00 AM | 0 comments

USD Up vs. GBP, Down vs. JPY, Fluctuates vs. EUR

The macroeconomic data from the US was rather mixed today, making the US dollar fluctuate against the euro. The US currency gained versus the Great Britain pound, but fell versus the Japanese yen.

The report about the import and export prices in the US was positive. Export prices increased 0.5 percent in August, following the 0.4 percent drop in July. Import prices decreased 0.4 percent last month (led by the 1.8 percent decrease in fuel prices), but that’s still better than the forecast of a 0.7 percent decline.

On the negative side, the Treasury budget deficit widened in July. The Department of the Treasury reported the deficit was $134.2 billion in August, compared to the deficit of $129.4 billion in July. Market analysts that the deficit of budget would shrink to $128.4 billion.

EUR/USD traded near its opening level of 1.3679 as of 22:06 GMT, following the drop to the daily low of 1.3557. GBP/USD fell from 1.5867 to 1.5779, while USD/JPY dropped from 77.18 to 76.92 today.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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3:59 AM | 0 comments

Mixed Fundamentals Leave Traders Uncertain, USD Fluctuates

The US dollar fluctuated as the mixed fundamental data left Forex traders uncertain will the US economy face recovery or recession. The currency was falling yesterday, but at the start of today’s trading session the dollar rebounded.

There was plenty of good news. The consumer price index rose 0.4 percent in August, compared with the median forecast of 0.2 percent. The current account deficit decreased to $118.0 billion (preliminary) in the second quarter of 2011, from $119.6 billion in the first quarter, instead of widening to $122.0 billion as was expected. Industrial production advanced 0.2 percent in August.

There were enough bad news, though. The jobless claims increased from 417,000 to 428,000 last week. The Empire State Manufacturing Survey and the Business Outlook Survey of the Federal Reserve Bank of Philadelphia showed that manufacturing conditions in the US worsened in September.

EUR/USD fell from 1.3875 to 1.3852 today as of 2:32 GMT after it rose yesterday from 1.3754 to 1.3875. GBP/USD traded near 1.5794, following yesterday’s rally from 1.5770 to 1.5798. USD/JPY traded at 76.78 after opening at 76.68.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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3:57 AM | 0 comments