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The dollar gained on Friday after data showed slower than expected U.S. jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month. The unemployment rate fell to 4.4% last month from a revised 4.5% in November, the U.S. Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000. The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers…
EUR/USD prolonged its agony throughout the week, poising to print losses of 0.70%, as it fell 0.20% on Friday, despite the release of mixed economic data in the US. In the European Union, Retail Sales exceeded forecasts, but traders’ focus remains around the dynamics of the US and the Dollar. The pair trades at 1.1636 after hitting a daily peak of 1.1662.Euro remains under pressure despite mixed US data, as investors stay focused on Dollar dynamicsDecember’s US Nonfarm Payroll figures were mixed as the economy added 50K jobs, below forecast for a 60K increase, also below November’s 64K print. Nevertheless,…
Richmond Fed President Tom Barkin said the decline in the unemployment rate was welcome and described job growth as modest but stable. He also noted that hiring remains concentrated in healthcare and AI, leaving the overall picture uncomfortably narrow, adding that demand still looks healthy, while progress on inflation will take time, keeping upcoming data in focus.Key QuotesDrop in the unemployment rate is welcome.Hard to find firms outside of healthcare or ai who are hiring.Job growth is modest, very much in line with low-hiring and low-firing continuing.The narrowness of hiring is “uncomfortable.”Do not hear the cost of interest being cited…
The Canadian Dollar (CAD) trades little changed against the British Pound (GBP) on Friday, with GBP/CAD struggling to find direction as traders show a muted reaction to Canada’s latest employment report. At the time of writing, the pair trades around 1.8636, hovering near one-month highs.Data released by Statistics Canada showed that Net Change in Employment rose by 8.2K in December, beating market expectations for a 5K decline, but easing sharply from November’s 53.6K gain. Meanwhile, the Unemployment Rate climbed to 6.8% from 6.5%, coming in above forecasts of 6.6%.Wage growth also showed signs of cooling. Average Hourly Wages increased 3.7%…
AUD/USD trades lower on Friday, with the pair hovering around 0.6680 at the time of writing, down 0.23% on the day. The move mainly reflects renewed support for the US Dollar (USD), against a backdrop of mixed macroeconomic releases in the United States (US), while the Australian Dollar (AUD) remains weighed down by softer expectations for monetary tightening in Australia.The US Dollar is supported after the release of December labor market data in the United States. Figures from the Bureau of Labor Statistics showed that job creation slowed, with only 50,000 new jobs added, falling short of market expectations. However,…
Gold price rises on Friday, poised to end with weekly gains of nearly 4% as an employment report in the US was mixed, with the economy adding fewer jobs than projected. Still, the Unemployment Rate ticked lower, yet investors are still betting the Federal Reserve (Fed) to cut rates this year. At the time of writing, XAU/USD trades at $4,507, up 0.65%.Bullion rallies as weaker payrolls keep Fed cut bets aliveThe US economic data weighed on investors’ expectations of lower interest rates in the short term. But for the whole year, traders seem confident that the Federal Reserve would lower…
USD/CAD trades around 1.3900 on Friday at the time of writing, up 0.25% on the day, supported by a combination of macroeconomic factors favoring the US Dollar (USD) and weighing on the Canadian Dollar (CAD).The Greenback finds support following the release of mixed labor market data in the United States (US). Nonfarm Payrolls (NFP) rose less than expected in December, while the Unemployment Rate declined and wage growth accelerated. Taken together, these figures point to a labor market that is gradually cooling but remains relatively resilient, reinforcing expectations of a cautious approach from the Federal Reserve (Fed). Markets largely expect…
The Japanese Yen (JPY) extends its losses against the US Dollar (USD) on Friday, with USD/JPY pushing higher for a fourth straight day as the Greenback builds on its recent advance following the latest batch of US economic releases. At the time of writing, the pair is trading around 158.00, hovering near its highest level since January 2025 and on track for a second straight weekly gain.Data from the US Bureau of Labor Statistics (BLS) showed that job growth slowed in December. The US economy added 50,000 jobs, falling short of market expectations for a 60,000 increase and easing from…
The Pound Sterling (GBP) retraces on Friday after December’s Nonfarm Payrolls report delivered mixed figures, though traders reduced bets for an interest rate cut in January. At the time of writing, GBP/USD trades at 1.3412 after reaching a high of 1.3451.Sterling retreats on mixed US payrolls data, traders pare near-term easing expectationsThe US Bureau of Labor Statistics (BLS) revealed that the economy added just 50K people to the workforce, below estimates of 60K and the previous revised print of 56K. Although the print shows signs of weakness, the Unemployment Rate edged lower from 4.6% to 4.4%, beneath forecasts of 4.5%.The…
Rather than signaling a setback, December’s modest employment gain and rising unemployment rate reinforce our view that Canada’s labor market recovery is underway but will likely prove choppy, with slack absorbed only gradually over time, Royal Bank of Canada Senior Economist Claire Fan reports. December employment gains modest as unemployment rises”Employment grew by just 8,000 in December, following a robust 181,000 increase over the prior three months. The unemployment rate rose to 6.8% from 6.5%, driven primarily by a jump in the share of the population looking for work rather than an increase in layoffs. Even at 6.8%, the rate…