Stock Market Watch

Forex Market Update: Dollar Index Falls After Non-Farm Payrolls Data

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The U.S. dollar fell sharply against all major traded currencies on Friday after the Labor Department’s non-farm payrolls report showed that hiring cooled off in July, raising hopes that the Federal Reserve will continue with its quantitative easing for an extended period of time.

The dollar index, a measure on U.S. unit’s against a basket of six major traded currencies, fell 0.22% to 82.17.

Earlier today, the Labor Department said that 162,000 jobs were added in July. Economists polled by Reuters had expected 184,000 new payrolls. The unemployment level, though, fell to 7.4% in July from 7.5% in June.

A spate of unexpectedly strong economic data releases right through the week had fanned speculation that the Fed might soon end its economic stimulating measures.

Reacting over the lackluster job market data and its implication on tapering of the bond purchase program, Douglas Borthwick, managing director, Chapdelaine Foreign Exchange in New York, said, “Any misconceptions that the Fed was looking to taper in September have been blown out of the water today after the nonfarm payrolls number disappoints to the n’th degree,” according to Reuters.

“The U.S. economy remains on a shaky foundation in terms of both GDP and employment. Until the foundation is strengthened, the Fed will be forced to continue its easing bias,” added Borthwick, which in turn weigh on the dollar.

At last check, the euro gained 0.36% to trade at $1.325.

Against the yen, the dollar fell 0.21% to yen99.34.

 








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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