Dollar Rebounds After Payrolls Data
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From Forexnews.com June 7, 2013The dollar received welcome relief today after recent losses against both the EUR and JPY when official Non Farms Payroll (NFP) data beat expectations.
The official Labor Department Figures showed the U.S. added 175,000 jobs in May, just above analysts expectations of a 165,000 rise. Whilst not a metaphoric beat, it is at least heading in the right direction, and provided welcome relief for the dollar, which has been pounded in recent days after a string of disappointing data.
It wasn’t all good news however, the unemployment rate ticked a tenth of a percentage point higher to 7.6 percent, but the increase was put down to more workers entering the labor force, rather than being laid off.
The data, whilst positive, is not enough on its own to sway any decision about tapering back the Fed’s bond buying program. Terry Sheehan, Economic analyst at Stone & McCarthy, said:
“We don’t think there is anything decisive in this report to change our outlook for the Fed decision. We think it’s still probable that they will start paring the asset purchase program at the July meeting, but we have more data due in the next couple of weeks, retail sales in particular.”
“If the economic data comes in stronger in the coming weeks the FOMC could determine that it’s time to start paring back purchases.”
In U.S. trading on Friday, EUR/USD was down 0.14 percent at 1.3227, up from a session low of 1.3193 and off from a high of 1.3285.
USD/JPY was up 0.63 percent at 97.61, off from a high of 97.79. The dollar was also broadly higher against the Pound and Aussie, but not the Loonie, which strengthened after strong Canadian jobs data.