November 1, 2019 / 1:30 PM / 17 days ago

FOREX-Dollar rises as job gains beat forecasts

    * U.S. added more jobs than expected in October
    * Dollar weighed down by trade optimism, slowdown fears

 (New throughout, updates prices, market activity and comments
to U.S. market open, new byline, changes dateline, previous
LONDON)
    By Karen Brettell
    NEW YORK, Nov 1 (Reuters) - The dollar rose on Friday after
data showed that U.S. jobs growth slowed less than expected in
October, while wages gained and hiring in the prior two months
was stronger than previously estimated.
    Nonfarm payrolls increased by 128,000 jobs last month, while
average hourly earnings increased six cents, or 0.2% after being
unchanged in September.
    “The data is much better than expected. Markets were braced,
certainly in headline terms, for some much weaker numbers given
the expected impact from the GM strike and the census hiring. So
very good data in that context,” said Shaun Osborne, chief fx
strategist at Scotiabank in Toronto.
    Striking workers who do not receive a paycheck during the
payrolls survey period are treated as unemployed. The strike by
about 46,000 workers at GM plants in Michigan and Kentucky ended
last Friday.
    Temporary census workers also left their jobs during the
month.
    The dollar index against a basket of six major currencies
 rose as high as 97.45, up from 99.27 before the data,
before retracing to 97.30, up 0.02% on the day.
    The dollar has weakened since the Federal Reserve on
Wednesday cut rates for the third time this year, and indicated
that further reductions may not be forthcoming.
    Concerns about a slowing U.S. economy is weighing on the
greenback, with the U.S. central bank expected to resume rate
cuts if the economic data worsens.
    Safe haven flows into the U.S. currency have also weakened
on optimism that the United States and China are close to
reaching a deal to end their trade war, which has been blamed
for slowing global growth.
    “The apparent progress on U.S.-China trade talks has
undercut the dollar to some extent,” said Osborne. And, “there
is a bit more vulnerability starting to feed into the dollar
with perhaps the U.S. economy slowing down.”
    The initial "phase one" trade pact with China appears to be
in good shape and is likely to be signed around mid-November,
although a finite date is still in question, U.S. Commerce
Secretary Wilbur Ross said on Friday.
    
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    Currency bid prices at 9:15AM (1315 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1138        $1.1150     -0.11%         -2.89%      +1.1168     +1.1129
 Dollar/Yen       JPY=        108.0900       108.0200    +0.06%         -1.97%      +108.2500   +107.9000
 Euro/Yen         EURJPY=     120.40         120.46      -0.05%         -4.61%      +120.6500   +120.3700
 Dollar/Swiss     CHF=        0.9884         0.9863      +0.21%         +0.71%      +0.9894     +0.9855
 Sterling/Dollar  GBP=        1.2948         1.2940      +0.06%         +1.50%      +1.2972     +1.2928
 Dollar/Canadian  CAD=        1.3179         1.3159      +0.15%         -3.36%      +1.3195     +1.3140
 Australian/Doll  AUD=        0.6895         0.6893      +0.03%         -2.18%      +0.6911     +0.6885
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1012         1.0999      +0.12%         -2.15%      +1.1014     +1.0999
 Euro/Sterling    EURGBP=     0.8601         0.8615      -0.16%         -4.26%      +0.8629     +0.8596
 NZ               NZD=        0.6427         0.6411      +0.25%         -4.32%      +0.6442     +0.6407
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.1231         9.1906      -0.73%         +5.61%      +9.1983     +9.1144
 Euro/Norway      EURNOK=     10.1640        10.2490     -0.83%         +2.60%      +10.2585    +10.1568
 Dollar/Sweden    SEK=        9.6034         9.6499      -0.62%         +7.14%      +9.6563     +9.5822
 Euro/Sweden      EURSEK=     10.6971        10.7641     -0.62%         +4.22%      +10.7710    +10.6885
  
    

 (Editing by Chizu Nomiyama)
  
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