January 5, 2018 / 3:29 PM / 6 months ago

FOREX-Dollar rises on rate hopes, undeterred by U.S. jobs report

    * U.S. employment number weaker than expected
    * Wage growth a positive sign for the U.S. labor market.
    * Markets still see Fed raising rates this year

 (Adds comment, table, updates prices)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Jan 5 (Reuters) - The dollar rose on Friday, after
a brief dip, as investors reckoned a weaker-than-expected U.S.
December non-farm payrolls report would not deter the Federal
Reserve from raising interest rates multiple times this year
though at a gradual pace.
    U.S. nonfarm payrolls increased by 148,000 jobs last month.
Economists were forecasting job gains of 190,000. Employment
data for October and November data were revised to show 9,000
fewer jobs created than previously reported.
    The dollar briefly slipped after the softer-than-forecast
number, but has since regained momentum.
    "It was a little disappointing. The market doesn't care. The
margin of error on this number is always big," said Paul Nolte,
portfolio manager at Kingsview Asset Management in Chicago,
referring to the U.S. jobs data. 
    "What we'd be concerned about is if we see a couple of
prints below 100,000. Until then we're okay," he added.
    Fed funds futures still price in a nearly 70 percent chance
the U.S. central bank will hike interest rates in March,
according to CME's Fedwatch.
    One bright spot in the U.S. December employment report was
the rise in wage growth, analysts said. 
    Average hourly earnings rose 9 cents, or 0.3 percent, in
December after gaining 0.1 percent in the prior month. That
lifted the annual increase in wages to 2.5 percent from 2.4
percent in November.
    "This provides further evidence that wage gains have become
self-sustaining – while helping to support interest rate
expectations on the front end of the curve," said Karl
Schamotta, director of global product and market strategy, at
Cambridge Global Payments in Toronto.
    In mid-morning trading, the dollar gained 0.4 percent
against the yen to 113.22, while the euro fell 0.3
percent versus the dollar to $1.2029.
    That put the dollar index, a measure of the greenback's
value against six major currencies, up 0.2 percent on the day.
    
    ========================================================
    Currency bid prices at 10:02AM (1502 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.2028        $1.2067     -0.32%         +0.27%      +1.2083     +1.2026
 Dollar/Yen       JPY=        113.2100       112.7400    +0.42%         +0.48%      +113.3000   +112.7300
 Euro/Yen         EURJPY=     136.19         136.06      +0.10%         +0.75%      +136.6200   +136.0300
 Dollar/Swiss     CHF=        0.9774         0.9744      +0.31%         +0.32%      +0.9784     +0.9740
 Sterling/Dollar  GBP=        1.3550         1.3551      -0.01%         +0.28%      +1.3581     +1.3525
 Dollar/Canadian  CAD=        1.2376         1.2485      -0.87%         -1.60%      +1.2513     +1.2355
 Australian/Doll  AUD=        0.7851         0.7863      -0.15%         +0.64%      +0.7869     +0.7836
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1758         1.1760      -0.02%         +0.59%      +1.1778     +1.1755
 Euro/Sterling    EURGBP=     0.8875         0.8905      -0.34%         -0.09%      +0.8913     +0.8871
 NZ               NZD=        0.7164         0.7153      +0.15%         +1.10%      +0.7186     +0.7146
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.0520         8.0634      -0.14%         -1.89%      +8.0931     +8.0559
 Euro/Norway      EURNOK=     9.6874         9.7363      -0.50%         -1.64%      +9.7535     +9.6900
 Dollar/Sweden    SEK=        8.1395         8.1360      -0.27%         -0.76%      +8.1640     +8.1267
 Euro/Sweden      EURSEK=     9.7920         9.8190      -0.27%         -0.48%      +9.8376     +9.7940
     

 (Reporting by Gertrude Chavez-DreyfussEditing by Chizu Nomiyama
and Susan Thomas)
  
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