Published: Sat, June 03, 2017
Industry | By Faith Ward

Dollar hits 1-week high vs yen, eyes on jobs data

May's figures followed less than stellar job gains in April (revised downward to 174,000 from 211,000) and an especially weak March (revised downward to 50,000 from 79,000).

Data showed that US nonfarm payrolls increased just 138,000 last month as the manufacturing, government and retail sectors lost jobs, while the consensus forecast was for 185,000 new jobs.

Nonfarm payrolls increased 138,000 last month as the manufacturing, government and retail sectors lost jobs, the Labor Department said on Friday. Instead, Brainard is anxious by the fact that low unemployment and the seemingly strong labor market haven't stoked higher core inflation (which strips out volatile food and energy prices).

MSCI's all-country world stock index hit a new record, gaining 0.5 percent, as did British shares as financial stocks lifted the FTSE 100 index of top United Kingdom blue chips before paring gains. The UK's FTSE 100 also hovered near its highest-ever levels rose 0.4 percent. Both later trimmed gains closed the day higher.

The Dow Jones Industrial Average rose 135.53 points, or 0.65 percent, to end at 21,144.18, the S&P 500 gained 18.26 points, or 0.76 per cent, to 2,430.06 and the Nasdaq Composite added 48.31 points, or 0.78 per cent, to 6,246.83.

The greenback fell to seven-month troughs against the euro and Swiss franc, while sliding to a two-week bottom versus the yen.

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"It bodes well for the Fed; certainly the numbers are very, very high in terms of the likelihood of that (hike) coming through for June".

Analysts said the less rosy jobs data was unlikely to derail the Fed from raising interest rates this month. The dollar was down 0.9% against the yen at the time of writing, and yields on 10-year treasury notes touched their lowest level since November, as investors sought haven assets.

The dollar index, tracking the unit against key foreign currencies, fell to a seven-month low and was last down 0.44 percent at 96.774 .DXY The euro was 0.50 percent higher against the dollar to $1.1267.

Meanwhile, the other main news of the day was President Donald Trump's decision to withdraw the U.S. from the Paris Climate Accord, which could result in a rise in oil production.

Drilling activity stateside has been steadily increasing in the States with Baker Hughes' data showing last week that USA drillers had added rigs for the 19th week in a row, the second-longest such streak on record, implying that further gains in domestic production are ahead.

By comparison, the USA added 615,000 jobs between February and April of a year ago, and 586,000 jobs in 2015. WTI slipped to $47.48 a barrel while Brent crude dropped to $49.73 a barrel.

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