HomeJobsUS Dollar Slides After US Jobs Miss, Pound Breaks Above 1.26

US Dollar Slides After US Jobs Miss, Pound Breaks Above 1.26


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The US Dollar posted sharp losses after the weaker-than-expected US jobs report with the Pound to Dollar exchange rate (GBP/USD) surging above 1.2600 with 3-week highs around 1.2620.

The Euro to Dollar (EUR/USD) exchange rate also jumped to around 1.0800.

The latest US employment report recorded an increase in non-farm payrolls of 175,000 for April compared with consensus forecasts of around 240,000 while there was a small upward revision for the March data to 315,000 from the 303,000 reported previously.

The unemployment rate edged higher to 3.9% from 3.8%.

Average hourly earnings increased 0.2% on the month, slightly below expectations of 0.3%, with a slowdown in year-on-year growth to 3.9% from 4.1%.

The data overall suggested a slightly weaker labour market with moderate wage pressures. In response, there was a limited reassessment of the chances of lower interest rates with markets pricing in close to a 30% chance of a July rate cut.

Treasuries also rallied further with the 10-year yield dipping below the 4.50% level.

Weaker than expected data and lower yields undermined the dollar and there was also a further boost to risk appetite which helped curb potential defensive US currency support. Additionally, a fresh record for the FTSE 100 index helped boost the Pound.

foreign exchange rates

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