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Dollar Trading Mixed After Jobs Report Disappoints

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The dollar is turning in a mixed performance against its major rivals Friday afternoon, but remains little changed overall. The release of the weaker than expected November jobs report this morning has investors feeling uncertain about the pace of Fed rate hikes next year.

After reporting strong job growth in the previous month, the Labor Department released a report Friday morning showing employment in the U.S. increased by much less than expected in the month of November.

The report said non-farm payroll employment rose by 155,000 jobs in November after surging up by a downwardly revised 237,000 jobs in October. Economists had expected employment to climb by about 200,000 jobs compared to the jump of 250,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate in November remained unchanged for the second straight month at 3.7 percent, holding at its lowest level since hitting 3.5 percent in December of 1969.

A preliminary report released by the University of Michigan on Friday showed U.S. consumer sentiment has held steady in the month of December. The report said the consumer sentiment index for December came in at 97.5, unchanged from the final November reading. Economists had expected the index to dip to 97.0.

Wholesale inventories in the U.S. increased by slightly more than anticipated in the month of October, according to a report released by the Commerce Department on Friday. The Commerce Department said wholesale inventories advanced by 0.8 percent in October after climbing by an upwardly revised 0.7 percent in September.

Economists had expected inventories to rise by 0.7 percent compared to the 0.4 percent increase originally reported for the previous month.

The dollar has dropped to around $1.14 against the Euro Friday afternoon, from an early high of $1.1360.

Eurozone's economic growth rate halved in the third quarter as estimated initially, latest figures from the Eurostat showed on Friday. Gross domestic product grew 0.2 percent from the second quarter, when it increased 0.4 percent.

Germany's industrial production in October unexpectedly dropped for the first time in three months, suggesting that manufacturing is yet to recover from a slowdown despite some improvement in demand.

Industrial production dropped 0.5 percent from September, when they grew 0.1 percent, revised from 0.2 percent, preliminary figures from the Federal Statistical Office showed on Friday. Economists had forecast a 0.3 percent increase.

The buck has climbed to around $1.2725 against the pound sterling Friday afternoon, from an early low of $1.2790.

UK house price inflation slowed more-than-expected in November to its lowest level since December 2012, figures the Lloyds Banking Group subsidiary Halifax showed on Friday. The house price index rose 0.3 percent year-on-year in the three months to November, after a 1.5 percent increase in the three months to October. Economists had expected 1 percent growth.

The greenback reached an early high of Y112.927 against the Japanese Yen Friday, but has since retreated to around Y112.725.

The average of household spending in Japan was down 0.3 percent on year in October, the Ministry of Internal Affairs and Communications said on Friday, coming in at 290,396 yen. That missed expectations for an increase of 1.1 percent following the 1.6 percent decline in September.

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