- July 8, 2018
- Posted by: Trading
- Category: News
Investing.com – The dollar slumped against its rivals Friday, on mixed U.S. economic data showing the economy created more jobs than expected but wage growth undershot estimates.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.34% to 93.81.
The U.S. economy added 213,000 jobs in June, above while the unemployment rate , the Labor Department said on Friday.
The Federal Reserve’s view that a tighter labor market would lead to wage growth, increasing inflationary pressures, continues to be challenged as average hourly earnings grew slower-than-expected for the month.
grew 0.2%, undershooting economists’ forecast for a 0.3% increase.
The weaker average hourly earnings print scaled back some bullish investor expectations for two Fed rate hikes this year.
“The softer average earnings indicator is likely to catch more attention as it highlights a still tame wage inflation environment,” said Audrey Childe-Freeman, chief strategist at consultants FX Knowledge. “That could lead some market participants to start questioning whether we will see two Fed rate rises in second after all.”
The dollar was also weighed down by an uptick in the Canadian dollar as , reaffirmed investor expectations that the Bank of Canadian would hike interest rates by 25 basis points next week.
fell 0.33% to C$1.3090
U.S, and China trade tariffs kicked-in Friday, raising the prospect of a trade war between the world’s largest economic superpowers, but the reaction in safe-haven currencies was muted, as some said markets had priced in the impact.
fell 0.14% to Y110.49, while fell 0.35% to 0.9898.
rose 0.46% to $1.1744, while rose 0.34% to $1.3269.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.