By chubuke
New York (Reuters) -The US dollar fell sharply against their main peers on Friday after decisive monthly job data showed that American employers rented a fewer workers than expected, confirming the weakening of the labor market conditions and most likely ensuring a reduction in the Federal Reserve.
The Ministry of Labor data showed that non -agricultural salary statements increased by 22,000 jobs only last month, which are much lower than 75,000 jobs estimated by economists covered by Reuters.
The dollar decreased in all fields after the report. The weakest 0.70 % to 147.44 against the Japanese yen, but it was still on the right path for the second consecutive week of gains. Greenback decreased by 0.91 % to 0.79830 against the Swiss franc and was ready for the fourth consecutive week from the losses against the currency.
“The data provides evidence of what has been afraid, which companies witnessed throughout the year due to the changes in the trading policy, adding costs when it comes to tariffs,” said Juan Perez, Monex USA trade manager in Washington. “These costs can only be absorbed for a long time and what is evident is that companies are struggling with employment.”
The euro rose 0.55 % at $ 1.171675, and it was scheduled to make a weekly profit against the dollar. The dollar index decreased by 0.48 % to 97.767 and was set by 0.23 % this week.
“It is certainly not a good story for the US dollar and not a good story for the United States because what really creates today is that we are witnessing a very dangerous stagnation,” Perez added.
The US treasury revenues fell. The revenue of sensitive notes has decreased for two years 8.1 basis points to 3.511 %. The return on USA’s notes for 10 years decreased 8.8 basis points to 4.088 %.
The main Wall Street, including the S & P 500, Nasdaq and Dow, reflected the gains in the early trade and were all trading.
Traders are now pricing a 10 % chance to reduce 50 Basis at the next meeting of the Federal Reserve later this month, while the possibility of reducing the 25th Basis point is about 90 %, according to the Fedwatch tool for CME.
“The pendulum swollen to a large extent in favor of reducing the federal reserve price that even the market is pricing by 10 % of the 50 points,” said Mark Chandler, the chief market strategy in Bannockburn Global Forex. “But the clip of 50 points from the point will make it seem to make a mistake by not cutting before and I do not think they want to admit it … The wise thing that must be done, and I think the federal reserve is wise, it is 25 points.”
The pound rose against the weakest dollar after news on Friday that British Prime Minister Angela Rainer resigned after she admitted real estate taxes in a new house, in a new blow to its president, Prime Minister Kiir Starmer.
https://media.zenfs.com/en/reuters-finance.com/9224968fb710d0d5de86b60562b0befd
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