The US Dollar has weakened against the Pound and several of its most traded peers including the Euro after US employment data came in worse than expected.
According to the Washington based Labor Department, employers in the world’s largest economy added fewer workers in July .
The 162,000 increases in payrolls was the smallest recorded in four months and followed Junes revised figure of a 188,000 rise. Economists had been expecting a rise of 191,000.
The data has faded hopes that the Federal Reserve may start winding its stimulus programme as early as September.
“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. The US 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,” said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange in New York.
The data may have disappointed the markets but overall it was positive for the US economy as the total unemployment rate fell from 7.6% to 7.4%.
The Federal Reserve is now expected to maintain interest rates close to 0%, at least until unemployment falls below 6.5% and the inflation rate drops below its target of 2.5%. Asset purchases are expected to continue until next year or until the unemployment rate drops below the 7% mark.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6599
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7565
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1242
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6179
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0379
(Correct as of 14:45 pm GMT)
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