USD edges down after jobs report
Friday 2 September, 2022
Daily Currency UpdateDemand for the US dollar eased from 20-year highs on Friday after data showed that the pace of hiring slowed slightly in August. The US economy added 315,000 non-farm jobs in August, which was a little above the expected 298,000. However this is much lower than the 526,000 increase in July, indicating that there is a slight slowdown in the pace of hiring. The jobless rate rose to 3.7% from 3.5% in July. Wage growth came in lower than expected at 0.3% month over month. The annual rate, however, held steady at 5.2%. The short-term outlook for the labor market still looks healthy, but with inflationary pressures still present, a 75 basis point rate hike in September by the US Federal Reserve is still likely. The US Dollar Index was trading at 109.11 at the time of writing.
Key MoversThe Eurozone saw a multi-month low print of their manufacturing PMI data on Thursday. New orders declined sharply for the sector, and manufacturers have also cut their buying activity back further in response to the darkening economic outlook. The bright spot is that inflation appears to have peaked out in the Eurozone and could now be on its way down. This could bring respite for the euro, which has – much like the pound – been on a losing streak versus the US dollar. EURUSD was trading at 1.00290 at the time of writing.
- EUR/USD: 0.9936 - 1.0033 ▲
- GBP/USD: 1.1529 - 1.1588 ▲
- AUD/USD: 0.6774 - 0.6853 ▲
- USD/CAD: 1.308 - 1.3155 ▼