USD ended the week on a higher note despite weak monthly jobs report. US economy saw 156,000 jobs created in the month of August against expectations of 185,000 jobs, the unemployment rate increased to 4.4% and average hourly earnings growth slowed to 0.1%. What made the report even worse was the fact that wages in July were revised down to 0.1% from 0.3%. The only reason for the USD strength is that market participants are hoping for hawkish comments from Fed officials next week. USD Index (DXY), which tracks the movement of the USD against six major currencies, rose by 0.08% on a week on week basis and is at a level of 92.81.
USD started the week on a low note and was trading at 15-month lows against the other major currencies on Monday after comments made by Federal Reserve Chair Janet Yellen at Jackson Hole disappointed market participants. Fresh geopolitical tensions after North Korea fired a missile that flew over northern Japan added to USD uncertainty. Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting.
Fed Chair Janet Yellen offered no insight into the central bank’s thinking on future monetary policy or the timing of its balance sheet unwinding, sparking uncertainty as to whether the central bank will raise rates for a third time later this year.
U.S. conference board on Tuesday reported that U.S. consumer confidence increased in August to 122.9 from 120 in July and against the expectation of 120.3.
U.S. Commerce Department reported that the U.S. economy grew by an annualized rate of 3.0% in the second quarter, up from an initial estimate of 2.6%.
U.S. private sector added 237,000 jobs in the month of August, the largest monthly increase in five months against the expectation of 183,000 job addition.
National Association of Realtors reported that pending home sales decreased by 0.8% in the month of August against the expectations for a gain of 0.5%.
U.S. consumer spending rose slightly less than expected in July and annual inflation advanced at its slowest pace in more than 1-1/2 years. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased by 0.3% in the month of July against the expectation of 0.4% gain, followed by 0.2% rise in June.
U.S. Department of Labour on Thursday reported that the number of individuals filing for initial jobless benefits in the week ended 26th August rose by 2,000 to 236,000 from previous week’s total of 234,000 against the expectations of a rise by 3,000 to 237,000.
Institute for Supply Management reported that its manufacturing index in August climbed to 58.8 from 56.3 in July. That is the highest reading since April 2011.
EUR/USD hit a 2-year high of 1.2070 before sinking below 1.19. On a weekly basis euro depreciated by 0.54% against the USD. Euro was on the back foot after growing number of European Central Bank officials are concerned over the recent strength of the currency. The strong euro is a headache for the ECB at a time when it is preparing to start deliberations on scaling back monetary stimulus. Further, the data showed that inflation in the euro area rose to an annualized 1.5% in August but underlying core inflation remained unchanged at 1.3%.
Asian currencies were largely mixed last week against the USD. Australian Dollar appreciated by 0.54%, New Zealand Dollar depreciated by 1.15%, Japanese Yen depreciated by 0.81% against the USD and depreciated by 0.28% against the Euro. South Korean Won appreciated by 0.49%, Philippines Peso depreciated by 0.12%, Indonesian Rupiah appreciated by 0.2%, Indian Rupee appreciated by 0.01% against the USD and depreciated by 1.04% against the Euro, Chinese Yuan appreciated by 1.34%, Malaysian Ringgit appreciated by 0.03% and Thai Baht appreciated by 0.27%.
USD ended the week on a higher note despite weak monthly jobs report. US economy saw 156,000 jobs created in the month of August against expectations of 185,000 jobs, the unemployment rate increased to 4.4% and average hourly earnings growth slowed to 0.1%. What made the report even worse was the fact that wages in July were revised down to 0.1% from 0.3%. The only reason for the USD strength is that market participants are hoping for hawkish comments from Fed officials next week. USD Index (DXY), which tracks the movement of the USD against six major currencies, rose by 0.08% on a week on week basis and is at a level of 92.81.
USD started the week on a low note and was trading at 15-month lows against the other major currencies on Monday after comments made by Federal Reserve Chair Janet Yellen at Jackson Hole disappointed market participants. Fresh geopolitical tensions after North Korea fired a missile that flew over northern Japan added to USD uncertainty. Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting.
Fed Chair Janet Yellen offered no insight into the central bank’s thinking on future monetary policy or the timing of its balance sheet unwinding, sparking uncertainty as to whether the central bank will raise rates for a third time later this year.
U.S. conference board on Tuesday reported that U.S. consumer confidence increased in August to 122.9 from 120 in July and against the expectation of 120.3.
U.S. Commerce Department reported that the U.S. economy grew by an annualized rate of 3.0% in the second quarter, up from an initial estimate of 2.6%.
U.S. private sector added 237,000 jobs in the month of August, the largest monthly increase in five months against the expectation of 183,000 job addition.
National Association of Realtors reported that pending home sales decreased by 0.8% in the month of August against the expectations for a gain of 0.5%.
U.S. consumer spending rose slightly less than expected in July and annual inflation advanced at its slowest pace in more than 1-1/2 years. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased by 0.3% in the month of July against the expectation of 0.4% gain, followed by 0.2% rise in June.
U.S. Department of Labour on Thursday reported that the number of individuals filing for initial jobless benefits in the week ended 26th August rose by 2,000 to 236,000 from previous week’s total of 234,000 against the expectations of a rise by 3,000 to 237,000.
Institute for Supply Management reported that its manufacturing index in August climbed to 58.8 from 56.3 in July. That is the highest reading since April 2011.
EUR/USD hit a 2-year high of 1.2070 before sinking below 1.19. On a weekly basis euro depreciated by 0.54% against the USD. Euro was on the back foot after growing number of European Central Bank officials are concerned over the recent strength of the currency. The strong euro is a headache for the ECB at a time when it is preparing to start deliberations on scaling back monetary stimulus. Further, the data showed that inflation in the euro area rose to an annualized 1.5% in August but underlying core inflation remained unchanged at 1.3%.
Asian currencies were largely mixed last week against the USD. Australian Dollar appreciated by 0.54%, New Zealand Dollar depreciated by 1.15%, Japanese Yen depreciated by 0.81% against the USD and depreciated by 0.28% against the Euro. South Korean Won appreciated by 0.49%, Philippines Peso depreciated by 0.12%, Indonesian Rupiah appreciated by 0.2%, Indian Rupee appreciated by 0.01% against the USD and depreciated by 1.04% against the Euro, Chinese Yuan appreciated by 1.34%, Malaysian Ringgit appreciated by 0.03% and Thai Baht appreciated by 0.27%.