Forex News – Dollar crushed after weak nonfarm payrolls
August 2, 2013 12:57 pm
The nonfarm payrolls report crushed all the USD longs as the number of jobs created missed estimates and disappointed markets who now rethink their expectations that the Fed will begin tapering by September.
The number of jobs created in July in America’s nonfarm sector was 162,000, which was lower than the forecast for 184,000. Adding to the disappointment was a revision of the previous estimates for hiring in June, which was lowered to 188,000 from 195,000.
The unemployment rate fell from 7.6 to 7.4 percent, its lowest in over four years but the labor participation rate fell, so this drop is not something to celebrate about.
The broader U.S. economy is still stuck in low gear although recent data showed there is some slow grind forward.
The concern now is whether the pace of job gains recently is enough for the Fed to taper stimulus or whether the U.S. economy still needs support in the form of more money in the system through the government bond purchases.
After the nonfarm payrolls numbers at 8:30 am New York time, the dollar fell against the yen, reversing earlier gains. USDJPY dropped from a pre-data 99.93 down to 99.10 within about a half hour of the data.
The nonfarm payrolls report crushed all the USD longs as the number of jobs created missed estimates and disappointed markets who now rethink their expectations that the Fed will begin tapering by September.
The number of jobs created in July in America’s nonfarm sector was 162,000, which was lower than the forecast for 184,000. Adding to the disappointment was a revision of the previous estimates for hiring in June, which was lowered to 188,000 from 195,000.
The unemployment rate fell from 7.6 to 7.4 percent, its lowest in over four years but the labor participation rate fell, so this drop is not something to celebrate about.
The broader U.S. economy is still stuck in low gear although recent data showed there is some slow grind forward.
The concern now is whether the pace of job gains recently is enough for the Fed to taper stimulus or whether the U.S. economy still needs support in the form of more money in the system through the government bond purchases.
After the nonfarm payrolls numbers at 8:30 am New York time, the dollar fell against the yen, reversing earlier gains. USDJPY dropped from a pre-data 99.93 down to 99.10 within about a half hour of the data.
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