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Dollar Losing Ground After Employment Growth Disappoints

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The dollar is down against its major rivals Friday afternoon, following the release of the mixed September jobs report. Employment in the U.S. rose by much less than expected in the month of September, according to a report released by the Labor Department on Friday.

The Labor Department said non-farm payroll employment climbed by 134,000 jobs in September, while economists had expected an increase of about 185,000 jobs.

However, the report also showed a significant upward revision to the pace of job growth in August, with employment spiking by 270,000 jobs compared to the originally reported jump of 201,000 jobs.

Despite the weaker than expected job growth, the Labor Department said the unemployment rate fell to 3.7 percent in September from 3.9 percent in August. The unemployment rate had been expected to edge down to 3.8 percent.

Reflecting an increase in imports and a decrease in exports, the Commerce Department released a report on Friday showed the U.S. trade deficit widened in the month of August. The Commerce Department said the trade deficit widened to $53.2 billion in August from a revised $50.0 billion in July.

Economists had expected the trade deficit to widen to $53.5 billion from the $50.1 billion originally reported for the previous month.

The dollar fell to a low of $1.1548 against the Euro Friday, but has since rebounded to around $1.1525.

Germany's factory orders rebounded in August as the decline in domestic demand was fully offset by robust foreign demand. Factory orders grew a more-than-expected 2 percent month-on-month in August, reversing a 0.9 percent drop in July, figures published by Destatis revealed Friday. Orders were forecast to rise 0.8 percent.

Germany's producer prices increased at the fastest pace in 11 months in August, figures from Destatis showed Friday. Producer prices advanced 3.1 percent year-on-year in August, following a 2.9 percent increase logged in July.

The buck rose to an early high of $1.3003 against the pound sterling Friday, but has since retreated to around $1.31.

UK house prices dropped unexpectedly in September, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Friday. House prices decreased 1.4 percent in September from August, confounding expectations for an increase of 0.2 percent. This was also much bigger than the 0.2 percent drop posted in August.

The greenback reached an early high of Y114.100 against the Japanese Yen Friday, but has since eased back to around Y113.775.

The average of household spending in Japan was up 2.8 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday, coming in at 292,481 yen. That beat expectations for an increase of 0.1 percent, which would have been unchanged from July.

Japan's leading index strengthened more-than-expected in August, preliminary data from the Cabinet Office showed Friday. The leading index, which measures the future economic activity, rose to 104.4 in August from 103.9 in July. The reading was forecast to rise moderately to 104.2.

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