September 6, 2019 / 2:14 PM / 3 months ago

FOREX-Dollar dips on mixed U.S. payrolls data, awaits Powell

    * U.S. hiring slows in August but wages grow faster than
    * Riskier currencies on track for weekly gains
    * Graphic: World FX rates in 2019

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, Sept 6 (Reuters) - The dollar slipped on Friday
against a basket of currencies, holding above a one-week low as
a mixed report on the U.S. jobs market in August reinforced the
view of a slowing expansion and the possibility of more interest
rate cuts from the Federal Reserve.
    Traders now await clues on the Fed's next move after it
embarked on its first rate cut since 2008 in July when Fed Chair
Jerome Powell participates on a panel about the economy and
monetary policy in Zurich, which begins at 12:30 p.m. EDT (1630
    "The jobs data were sufficiently mixed," said Marc Chandler,
chief market strategist at Bannockburn Global Forex LLC in New
York. "The market is not going to change its view of a rate cut
later in September."
    The U.S. Labor Department said private and public employers
hired 130,000 workers in July, fewer than the 158,000 forecast
among economists polled by Reuters, while hourly wages grew 0.4%
last month, a tad faster than the 0.3% increase projected by
    Interest rate futures still implied traders positioned for a
quarter-point rate decrease at the Fed's Sept. 17-18 policy
meeting, according to CME Group's FedWatch program.
    At 10:06 a.m. EDT (1406 GMT), an index that tracks the
greenback against the euro, yen, sterling and three other
currencies was 0.19% lower at 98.223 after hitting a
one-week low of 98.085 on Thursday.
    The dollar index is on track for 0.67% decline, its steepest
weekly loss since June. 
    The greenback lost ground against its rivals as global
tensions receded this week, most notably with China and the
United States agreeing to high-level trade talks in October.
    Safe-haven bids for the dollar abated in response to
political opposition to a "no-deal" Brexit and Hong Kong leader
Carrie Lam's withdrawal of an expedition bill that triggered
months of violent protests.
    "The world stared into the abyss this week, and it pulled
back," Chandler said.
    Still, global tensions have not dissipated, so there remain
some underlying bids for the dollar and yen, he said.
    The Japanese yen was up 0.18% versus the dollar
and up 0.06% against the euro. 
    Meanwhile, riskier currencies are looking at weekly gains
with improved investor sentiment.
    For example, the Australian dollar was up 0.53% at $0.6851,
putting it on track for its first weekly increase since
    The Aussie dollar, whose fortunes are tied to the Chinese
economy, was bolstered earlier by the People's Bank of China's
move to cut banks' reserve requirements for the first time this
    The Chinese currency in the offshore market
extended gains and was trading up 0.37% against the greenback at
7.1118 yuan.
    Currency bid prices at 10:07AM (1407 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar      EUR=        $1.1049        $1.1033     +0.15%         -3.66%      +1.1056     +1.1021
 Dollar/Yen       JPY=        106.7400       106.9200    -0.17%         -3.19%      +107.0900   +106.6400
 Euro/Yen         EURJPY=     117.95         117.98      -0.03%         -6.55%      +118.2600   +117.8500
 Dollar/Swiss     CHF=        0.9873         0.9858      +0.15%         +0.60%      +0.9917     +0.9855
 Sterling/Dollar  GBP=        1.2312         1.2329      -0.14%         -3.49%      +1.2343     +1.2287
 Dollar/Canadian  CAD=        1.3167         1.3227      -0.45%         -3.42%      +1.3235     +1.3160
 Australian/Doll  AUD=        0.6850         0.6813      +0.54%         -2.82%      +0.6853     +0.6808
 Euro/Swiss       EURCHF=     1.0911         1.0877      +0.31%         -3.05%      +1.0931     +1.0876
 Euro/Sterling    EURGBP=     0.8972         0.8947      +0.28%         -0.13%      +0.8986     +0.8946
 NZ               NZD=        0.6440         0.6373      +1.05%         -4.12%      +0.6443     +0.6365
 Dollar/Norway    NOK=        8.9679         9.0067      -0.43%         +3.81%      +9.0219     +8.9667
 Euro/Norway      EURNOK=     9.9103         9.9415      -0.31%         +0.04%      +9.9525     +9.9105
 Dollar/Sweden    SEK=        9.6033         9.6855      -0.71%         +7.13%      +9.6936     +9.5998
 Euro/Sweden      EURSEK=     10.6143        10.6907     -0.71%         +3.39%      +10.6945    +10.6110
 (Reporting by Richard Leong
Additional reporting by Saikat Chatterjee in London; Tom
Westbrook in Singapore
Editing by Larry King and Jonathan Oatis)
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