Dollar Weaker After US Reports Sluggish Job Growth
A Bloomberg dollar gauge remained lower after delayed government data showed US job growth remained sluggish in November and the unemployment rate rose, pointing to a continued cooling in the labor market after a weak October.
The Bloomberg Dollar Spot Index was down as much as 0.3% immediately after the report, but trimmed its decline to trade 0.2% lower on the day.
Nonfarm payrolls increased 64,000 in November after declining 105,000 in October, according to Bureau of Labor Statistics data out Tuesday. The unemployment rate was 4.6% last month, up from 4.4% in September.
The value of retail purchases, not adjusted for inflation, was essentially unchanged in October after a revised 0.1% gain in September, according to a Commerce Department report that was also delayed due to the government shutdown.
Eight out of 13 retail categories posted increases, including solid advances at department stores and online merchants.
“The market was expecting noisy data on payrolls,” said Aroop Chatterjee, strategist at Wells Fargo in New York. “And given all of that data seems rather tame”.
“It’s hard to argue that this will increase the likelihood of a January cut, particularly given the strong retail sales print,” he said.
For the Fed’s next policy decision in January, the market is pricing in about six basis points of easing. A reduction is fully priced in by mid-2026.
USD/JPY fell 0.3% to 154.79, its second day of declines; the market and economists anticipate the Bank of Japan will raise rates later this week.
GBP/USD rose 0.3% to 1.3419; UK unemployment climbed to its highest level in almost five years and wage growth eased, cementing the case for a widely expected Bank of England interest-rate cut later this week.
NZD/USD climbed 0.1% to 0.5787; the nation lowered projections for debt issuance.
Source : Bloomberg.com
