Forex – U.S. Dollar Flat After Jobs Report

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Forex - U.S. Dollar Flat After Jobs Report

IQ Option – The dollar was flat on Friday, despite an upbeat jobs report and news that a trade deal between the U.S. and China is not likely.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was flat at 96.28 as of 11:04 AM ET (15:04 GMT).

The greenback rose briefly after the jobs report data, but was flat soon after. Nonfarm payrolls rose by 250,000 in October, higher than the consensus forecast. The jobless rate was also steady, while average hourly earnings advanced 0.2%, as expected.

The positive report supports the case for the Federal Reserve to increase interest rates in December, which is likely to put pressure on gold. Chances of a December rate hike are priced in at 77.6%, according to IQ Option’s Fed Rate Monitor Tool.

Meanwhile, trade tensions weighed, as reports suggested that a trade deal with China is not likely.

U.S. President Donald Trump and Chinese President Xi Jinping spoke on the phone regarding trade on Thursday, boosting sentiment that a trade deal will be reached when the two meet at G-20 summit later this month.

The dollar rose against the Japanese yen, with USD/JPY up 0.22% to 112.96. The Canadian dollar pared back earlier gains, with USD/CAD up 0.13% to 1.3104.

The euro was also flat, with EUR/USD inching up 0.05% to 1.1413. The euro has been under pressure all week by political uncertainty in Germany and an ongoing feud between Rome and Brussels over Italy’s budget.

Sterling was lower, with GBP/USD falling 0.23% to 1.2983.

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