© Reuters.
Investing.com – Updated at 4:11 pm GMT
The US dollar fell more than 1% after the unemployment rate rose 3.7%, although the US labor market continues to add more jobs at a faster rate than expected.
Despite updates that the Fed will continue to aggressively raise rates, the dollar has fallen below 112 and is now at 111,490 levels.
Meanwhile, the euro is up strongly, at 0.9873, and index futures are up 346 points. And it strongly increases in spot transactions by over 2% to reach $ 1,664 an ounce.
While the Fed’s follow-up tool indicates that the central bank will raise interest rates at its next December meeting by 50 basis points, after sharp fluctuations in expectations that indicated an increase to 75 basis points of more than 50%.
___________________________________________________
The American fell in early European trading on Friday before the release of a major US employment report, but was still on track for weekly gains following President Jerome Powell’s hawkish stance.
dollar now
The dollar index, which measures the greenback against a basket of six other currencies, fell 0.5% to 112.203, retreating from the two-week high of 113.15 it reached overnight.
However, the index was on track for a weekly gain of just under 2%, the largest increase since September.
Powell disappoints hope
The dollar rose earlier this week after Powell dashed hopes that the US central bank would soon begin to slow the pace of rate hikes, saying it was “too early” to discuss when the Fed could stop its rates. increases in the wake of another 75 basis point increase. .
Subsequently, traders capped some of these gains before the release of key US employment data later on Friday as economists expect non-farm payrolls to increase by 200,000 jobs in October. Data giving the impression of a healthier job market will vastly boost another large interest rate hike in December.
The euro against the dollar
The US dollar was up 0.1% to 0.9758, rebounding slightly after the pair fell to its lowest level in nearly two weeks overnight.
However, these gains are very temporary after data released on Friday showed German factory orders down 4.0% since September, their sixth decline in the past seven months and the largest decline since March.
This indicates that Germany, the largest economy in the Eurozone and the main driver of growth, is approaching recession.
Final data for the region’s composite and services PMI should be presented later in the session and both sectors are expected to appear firmly in contraction territory.
Pound versus dollar
GBP / USD rose 0.5% to 1.1224, rebounding from the previous session’s losses even as the Bank of England raised interest rates by 75 basis points, the largest increase since 1989.
The British pound was set for a weekly loss of more than 3%, the biggest since the September market turmoil due to the disastrous “mini-budget”, after the Bank of England gave a sobering valuation Britain’s growth prospects, indicating that the country’s economy was already in a state The recession could last two years.
The dollar against other currencies
The Japanese pair traded 0.3% lower to 147.88, with the yen supported by data showing that the Japanese services sector grew at the fastest pace in four months to October, supported by the withdrawal of most of the restrictions related to Covid.
However, the yen is on track to post a week of losses as the widening gap between Japanese and US interest rates keeps the Japanese currency under pressure.
AUD / USD was up 0.8% to 0.6336, rebounding from its lowest level in nearly two weeks, while USD / RMB fell 0.4% to 7.2702, retreating from the high of 15 couple years seen early in the week. the state’s stance on restrictions that guarantee “the absence of craving may soon become a thing of the past.
