Yahoo Finance U.S. Dollar Falls After Jobs Report Fails to Diminish Fed Cut Expectations
Investing.com - The U.S. dollar fell after the jobs report failed to diminish expectations of the Federal Reserve cutting rates next month.
The U.S. economy added just 164,000 jobs in July, compared to 193,000 in June, while job creation was as expected and the unemployment rate held steady near 50-year lows.
Trade tensions continued to weigh on investors, with demand for more traditional safe-haven assets rising after U.S. President Donald Trump threatened another 10% of tariffs on $300 billion worth of Chinese goods, which would put tariffs on all U.S. imports from China. Beijing warned on Friday it would retaliate.
The announcement was made just one day after the U.S. and China wrapped up trade discussions in Shanghai, and ended a trade truce the two countries struck in June.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 97.975 by 10:37 AM ET (14:37 GMT).
The safe-haven Japanese yen was higher, with USD/JPY falling 0.7% to 106.59.
The euro rose due to the weakness in the greenback. The currency was also boosted by reports that Trump is expected to make a trade announcement regarding the European Union at 1:45 PM ET (17:45 GMT). No details were given about what the agreement would entail.
EUR/USD gained 0.2% to 1.1101.
Sterling dipped down slightly, with GBP/USD down 0.1% to 1.2114. Elsewhere, USD/CAD rose 0.3% to 1.3241, while USD/MXN jumped 0.5% to 19.3248.
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