Home›Forex›Major Pairs›Dollar rebounds after weak US jobs data tempers Octobe…

Dollar rebounds after weak US jobs data tempers October rate bets

Nonfarm payrolls rose by 29,000 versus a 90,000 forecast, and wage growth disappointed, limiting immediate market reaction despite an initial dollar dip.

Reported · Written up by our desk · Major Pairs

Markets continued to reprice expectations for higher U.S. interest rates, a shift that kept U.S. equities under pressure, while the dollar recovered after a weaker-than-expected U.S. employment report, according to Action Forex.

Gold fell more than 3%, reaching its lowest level since August, as stronger-than-expected U.S. GDP growth helped keep long-term Treasury yields elevated.

In Japan, the BOJ’s September Summary of Opinions pointed to differing views on the pace of further tightening, and Tokyo core CPI rose 2.7% year over year versus a 2.4% forecast, supporting expectations for further Japanese rate increases.

Traders trimmed expectations for another Fed rate increase in October after the U.S. jobs data, but the dollar’s initial losses were quickly reversed, while U.S. equities were still pressured alongside elevated WTI crude oil prices.

Latest closeGold $4,172.10 ▼0.7%|WTI crude $91.26 ▼1.7%

More like this

Sources