Plus   Neg

Dollar Trading Mixed Ahead Of Jobs Report


The dollar is losing ground against its major European rivals Thursday afternoon, but is recovering from its weak start against the Japanese Yen. Traders are looking forward to the release of the December jobs report Friday morning. Employment data proved mixed this morning, with private sector employment growing more than anticipated, while weekly jobless claims increased by more than expected.

Partly reflecting favorable weather, payroll processor ADP released a report on Thursday showing much stronger than expected U.S. private sector job growth in the month of December. ADP said private sector employment surged up by 271,000 jobs in December after climbing by a downwardly revised 157,000 jobs in November.

Economists had expected an increase of about 178,000 jobs compared to the addition of 179,000 jobs originally reported for the previous month.

A report released by the Labor Department on Thursday showed a bigger than expected increase in first-time claims for U.S. unemployment benefits in the week ended December 29th. The report said initial jobless claims climbed to 231,000, an increase of 10,000 from the previous week's upwardly revised level of 221,000.

Economists had expected jobless claims to edge up to 220,000 from the 216,000 originally reported for the previous month.

Indicating a notable slowdown in the pace of growth in U.S. manufacturing activity in the month of December, the Institute for Supply Management released a report on Thursday showing a much bigger than expected drop by its index of activity in the manufacturing sector.

The ISM said its purchasing managers index tumbled to 54.1 in December after rising to 59.3 in November, slumping its lowest level since hitting 53.4 in November of 2016. While a reading above 50 still indicates growth in manufacturing activity, economists had expected the index to show a more modest drop to a reading of 57.9.

The dollar has dropped to around $1.14 against the Euro Thursday afternoon, from an early high of $1.1309.

The buck has fallen to around $1.2625 against the pound sterling this afternoon, from a high of $1.2514 this morning.

British construction sector growth was the weakest in three months in December amid a slower rise in commercial work, survey data from IHS Markit showed on Thursday. The CIPS Purchasing Managers' Index, or PMI, fell to 52.8 from 53.4 in November. The latest reading was in line with economists' expectations.

The greenback slid to a low of Y106.747 against the Japanese Yen Thursday morning, but has since rebounded to around Y107.825.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT