The U.S. dollar index increases by 0.05 percent after the unemployment rate hits a 50-year low.
Friday 4 October, 2019
Daily Currency UpdateUSD - United States DollarAccording to the Bureau of Labor Statistics, the unemployment rate declined to 3.5 percent in September, a 50-year low, showing strong hiring over the summer. At the same time, average hourly earnings climbed 2.9 percent, a slowdown from previous months. Total non-farm payroll employment rose by 136k when the expected number was 145k. Employment in health care and in professional and business services continued to trend upwards. The labor market continues to provide favorable circumstances for Americans in seeking a job, despite a global economic slowdown. Jay Powell is due to deliver opening remarks at a Fed Listens event hosted by the Federal Reserve at 2 pm EST in Washington DC. This event might keep market participants on edge in an usually quiet Friday. Other than Jay Powell’s speech, all eyes will be also on speeches by Boston Fed President Eric Rosengren and Federal Reserve Bank of Atlanta President Raphael Bostic.
Key MoversAccording to the BBC, a Scottish judge is being asked to consider whether Boris Johnson could be jailed if he takes the U.K. out of the E.U. without a deal. However, Mr. Johnson has said he would rather be "dead in a ditch" than ask European leaders for another extension. After substantial employment numbers in the U.S., the global equity market is soaring, but it is sending mixed signals to the major currencies. At the time of this writing, the best performers against the Greenback are the Swiss Franc, Aussie dollar, Kiwi dollar, and the Loonie. The most negatively affected currency is the British Pound.The Loonie rallies after Canada's exports rose 1.8 percent in August, according to Statistics Canada. The increase was due to a rise in exports of energy products and aircraft. Imports were up 1 percent, mostly on higher imports of crude oil and gold. As a result, Canada's goods trade deficit tightened from $1.4 billion in July to $955 million in August.
- USD/CAD: 1.3282 - 1.3335 ▼
- EUR/USD: 1.0945 - 1.0997 ▲
- GBP/USD: 1.2203 - 1.2399 ▼
- AUD/USD: 0.6741 - 0.6779 ▲
- NZD/USD: 0.6300 - 0.6349 ▲