The U.S. dollar fell on Friday after data showed the world’s largest economy added more new jobs than expected last month, but suggested signs of a slowdown as the rate hike of unemployment and lower wage inflation.
Nonfarm payrolls rose by 261,000 last month, data showed Friday.
September data was revised up to show 315,000 jobs added instead of 263,000 as previously reported.
Economists polled by Reuters had forecast 200,000 jobs, with estimates ranging from 120,000 to 300,000.
However, the unemployment rate rose to 3.7% from 3.5% in September.
Average hourly earnings rose 0.4 percent after rising 0.3 percent in September, but wage growth last month slowed to 4.7 percent year-on-year after having advanced 5 percent in September.
‘DEVIL IN THE DETAILS’
“The US labor market is strong and the data was hot,” said Naeem Aslam, chief market analyst at Avatrade in London.
“However, the devil is within [the] detail[s] and that is that the unemployment rate has risen and that may slow the dollar’s recovery,” Aslam said. “But for now, one thing is clear: that the Fed has a clear path to continue with its stance of falsified monetary policy”.
The US dollar index fell 1.9 percent to 110.79, but was up 0.03 percent from the previous week.
The New Taiwan dollar rose against the US dollar on Friday, gaining NT$0.060 to close at NT$32.185, but lost 0.12 percent from the previous week.
The US dollar fell 0.8 percent against the yen to £147.11, while the euro rose 1.3 percent to US$0.9870.
FED WALKING POSSIBILITIES
On Friday, Fed funds futures were priced at a 58% chance of a 75 basis point rate hike next month and a 43% chance of a 50 basis point hike.
Odds of a 75-basis-point increase rose to 64 percent immediately after the data.
The U.S. dollar strengthened broadly for most of the week after U.S. Federal Reserve Chairman Jerome Powell said on Wednesday that the central bank may continue to raise rates if inflation does not pick up. slow down
Additional reporting by CNA, with staff writer
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