Fall In U.S. Employment Drags Dollar Down

Trading 08 Jan 2021 Commentaire »

The U.S. dollar weakened against its major counterparts in the European session on Friday, as the nation's employment shrank unexpectedly in December, signaling that surging COVID-19 infections and restrictions have paused recovery in the labor market.

Data from the Labor Department showed that non-farm payroll employment fell by 140,000 jobs in December after climbing by an upwardly revised 336,000 jobs in November.

The decline surprised economists, who had expected employment to increase by about 71,000 jobs compared to the addition of 245,000 jobs originally reported for the previous month.

The unemployment rate came in at 6.7 percent in December, unchanged from November. Economists had expected the unemployment rate to inch up to 6.8 percent.

The currency was higher early in the session, as the U.S. treasury yields continued to rise on expectations of more fiscal stimulus under the Biden administration.

The prospect for more fiscal spending triggered a selloff in U.S. treasuries, lifting the yields.

Investors bet that the control of the Senate would enable President-elect Joe Biden to pass his agenda.

On Thursday, Richmond Federal Reserve President Thomas Barkin said that he was delighted to see the rise in market indicators of inflation expectations.

The second half of the year is likely to be robust, as the vaccine distribution gathers speed.

Echoing his remarks, St. Louis Fed President James Bullard said that there are the ingredients for higher inflation, with very powerful fiscal policy.

The economy is likely to boom when the impact of new coronavirus vaccines is shown.

The greenback advanced in the Asian session, driven by a strong rally in the treasury yields.

The greenback was down by 0.7 percent at 0.8822 against the franc, after a 10-day rise to 0.8885 at 3:00 am ET. At yesterday's trading close, the pair was quoted at 0.8842. The greenback may challenge support around the 0.87 region, if it slides further.

Data from the State Secretariat for Economic Affairs showed that Switzerland's jobless rate was stable in December.

The jobless rate was a seasonally adjusted 3.4 percent in December, same as seen in November. Economists had expected a rate of 3.5 percent.

The greenback dropped 0.6 percent to 1.2285 against the euro, following a 10-day high of 1.2213 seen at 3:00 am ET. The pair was worth 1.2270 when it closed deals on Thursday. The greenback is seen challenging support around the 1.24 mark.

Data from Eurostat showed that the euro area unemployment rate declined slightly in November.

The jobless rate dropped to 8.3 percent from 8.4 percent in October. The rate was forecast to rise to 8.5 percent.

The greenback was lower by 0.7 percent at a 2-day low of 1.3636 against the pound, after having climbed to 1.3538 at 8:15 pm ET. The pound-greenback pair had ended yesterday's trading session at 1.3563. Immediate support for the greenback is likely seen around the 1.38 level.

Data from the Lloyds Bank subsidiary Halifax and IHS Markit showed that UK house prices logged the slowest growth in the current sequence of increase that started in July.

House prices rose 0.2 percent from November, when prices were up 1 percent. This was the slowest increase since July.

The U.S. currency reached 103.60 against the yen, falling by 0.5 percent from over a 3-week high of 104.09 logged at 3:00 am ET. The pair had closed Thursday's deals at 103.77. Further fall in the currency may challenge support around the 100.00 level.

Data from the Ministry of Internal Affairs and Communications showed that Japan household spending increased 1.1 percent on year in November - coming in at 278,718 yen.

That beat expectations for a decline of 1.5 percent following the 1.9 percent increase in October.

The greenback depreciated to a 2-day low of 1.2659 against the loonie, pulling away from a high of 1.2708 registered at 3:00 am ET. The greenback was trading at 1.2690 against the loonie at yesterday's close. The greenback is likely to challenge support around the 1.22 level.

The greenback slid to 0.7799 against the aussie, following a gain to 0.7740 at 8:15 pm ET. The greenback was worth 0.7767 per aussie at Thursday's New York session close. Extension of downward trading may see the greenback finding support around the 0.82 region.

The greenback eased off from its Asian session's high of 0.7239 versus the kiwi, with the pair worth 0.7281. At Thursday's close, the pair was valued at 0.7254. Should the greenback continues its downtrend, 0.74 is likely seen as its next support level.

The U.S. consumer credit for November is due out in the New York session.


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Wholesale Inventories Virtually Unchanged In November

Trading 08 Jan 2021 Commentaire »

With an increase in inventories of durable goods offset by a slump in orders for non-durable goods, the Commerce Department released a report on Friday showing U.S. wholesale inventories came in unchanged in the month of November.

The Commerce Department said wholesale inventories were virtually unchanged in November after jumping by 1.3 percent in October. Economists had expected inventories to edge down by 0.1 percent.

Wholesale inventories came in unchanged as inventories of durable goods climbed by 0.9 percent, while inventories of non-durable goods tumbled by 1.2 percent.

Meanwhile, the report said wholesale sales rose by 0.2 percent in November following a 1.7 percent spike in the previous month.

Sales of non-durable goods increased by 0.7 percent, more than offsetting a 0.4 percent drop in sales of durable goods.

Even with the uptick in sales, the inventories/sales ratio for merchant wholesalers in November was unchanged from October at 1.31.


The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Wholesale Inventories Unchanged In November

Trading 08 Jan 2021 Commentaire »

U.S. Wholesale Inventories Unchanged In November


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Employment Unexpectedly Decreases By 140,000 Jobs In December

Trading 08 Jan 2021 Commentaire »

After reporting slowing job growth over the past few months, the Labor Department released a report on Friday unexpectedly showing a decrease in U.S. employment in the month of December.

The Labor Department said non-farm payroll employment fell by 140,000 jobs in December after climbing by an upwardly revised 336,000 jobs in November.

The decline surprised economists, who had expected employment to increase by about 71,000 jobs compared to the addition of 245,000 jobs originally reported for the previous month.

Employment decreased for the first time since April as the recent surge in coronavirus cases led to a nosedive in employment in the leisure and hospitality sector, which lost 498,000 jobs.

Private education employment also declined, while the job losses were partially offset by gains in professional and business services, retail trade, and construction.

Meanwhile, the report said the unemployment rate came in at 6.7 percent in December, unchanged from November. Economists had expected the unemployment rate to inch up to 6.8 percent.

The unemployment rate came in unchanged as the labor force inched up by 31,000 persons compared to a 21,000 person uptick in the household survey of employment.

The report said average hourly employee earnings climbed $0.23 or 0.8 percent to $29.81. Annual wage growth jumped to 5.1 percent in December from 4.4 percent in November.

"Looking ahead, continued restrictions on dining could see payrolls fall further in January," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "But, with the high-frequency indicators suggesting that the rest of the economy is still holding up and additional fiscal stimulus starting to feed through, we expect first-quarter GDP growth to be positive."


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Employment Unexpectedly Decreases In December

Trading 08 Jan 2021 Commentaire »

After reporting slowing job growth over the past few months, the Labor Department released a report on Friday unexpectedly showing a decrease in U.S. employment in the month of December.

The Labor Department said non-farm payroll employment fell by 140,000 jobs in December after climbing by an upwardly revised 336,000 jobs in November.

The decline surprised economists, who had expected employment to increase by about 71,000 jobs compared to the addition of 245,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate came in at 6.7 percent in December, unchanged from November. Economists had expected the unemployment rate to inch up to 6.8 percent.


The material has been provided by InstaForex Company - www.instaforex.com

Loonie Drops After Canada Jobs Data

Trading 08 Jan 2021 Commentaire »

Following the release of Canada jobs data for December at 8:30 am ET Friday, the loonie slipped against its major counterparts.

The loonie was trading at 1.5548 against the euro, 81.83 against the yen, 0.9868 against the aussie and 1.2702 against the greenback around 8:33 am ET.


The material has been provided by InstaForex Company - www.instaforex.com

Dollar Slightly Up Following U.S. Jobs Data

Trading 08 Jan 2021 Commentaire »

Following the release of U.S. nonfarm payrolls data for December at 8:30 am ET Friday, the greenback rose slightly against its major counterparts.

The greenback was trading at 103.89 against the yen, 0.8844 against the franc, 1.2247 against the euro and 1.3586 against the pound around 8:31 am ET.


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Employment Fell By 63,000 Jobs In December

Trading 08 Jan 2021 Commentaire »

Canadian Employment Fell By 63,000 Jobs In December


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Unemployment Rate Ticks Up To 8.6% In December

Trading 08 Jan 2021 Commentaire »

Canadian Unemployment Rate Ticks Up To 8.6% In December


The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Unemployment Rate Unchanged At 6.7% In December

Trading 08 Jan 2021 Commentaire »

U.S. Unemployment Rate Unchanged At 6.7% In December


The material has been provided by InstaForex Company - www.instaforex.com