US Dollar (USD) Exchange Rate: ‘Greenback’ Broadly Weaker Following Poor Jobs Report
The US Dollar fell against the majority of its most traded peers on Friday following the publication of a disappointing Non-Farm Payrolls Report which renewed concerns over the strength of the USA’s jobs market.
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According to the Labour Department based in Washington DC the number of new jobs created in the world’s largest economy rose by 113,000 in January, well below the 185,000 increase which was forecast by economists. Jobs created in the nation’s private sector also failed to meet expectations by rising by 142,000. The overall unemployment rate fell however to 6.6% but that was mostly down to a bigger number of unemployment US citizens giving up looking for work.
Against the Pound the Dollar fell after the UK currency found support from a report which showed that the nation’s trade deficit narrowed more than expected in December. A report released by the think-tank NIESR also backed the Pound after it showed that the UK economy is expected to grow by 2.5% in 2014 and by 2.1% in 2015. NIESR also said it expected the unemployment rate to fall below 7% before the end of the year.
The Euro meanwhile was pushing close to a fresh one-week high following the release of the disappointing US data. The single currency however was also under pressure after official data showed that industrial and manufacturing production in Germany fell unexpectedly. The region’s biggest economy also saw its trade surplus narrow.
The ‘Greenback’ was also lower against the Australian Dollar, New Zealand Dollar and Canadian Dollar.