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10.09.2017 / 07:34

The First Decline of US Nonfarm Payrolls Since 2000

The U.S. dollar turned negative against most major rivals on Friday after initially spiking higher on a hurricane-ridden employment report that showed the first decline in job creation in seven years but better-than-expected wage growth. The U.S. nonfarm payrolls contracted by 33,000, undercutting consensus estimates of 75,000, and average hourly wages rose 0.5% in September, exceeding forecasts of 0.3%. The U.S. unemployment rate dropped to 4.2% in September, beating the consensus estimate of 4.4%, making this the lowest point in the data since December 2000. Wholesale inventories for August rose to 0.9%, up from 0.6% in the previous month. Consumer credit slowed to $13 billion in August, down from $18 billion in July.

The ICE U.S. Dollar Index which measures the U.S. currency against six major rivals, was down 0.2% at 93.809, after hitting an intraday high of 94.261. On the week, the dollar gauge is up 0.8%. Meanwhile, the British pound was buying $1.3068, down from $1.3118 late Thursday in New York, and was hovering at levels not seen since early September. Week-on-week, sterling dropped 2.5%, making it the biggest since the week ending Oct. 7 of last year, when the currency lost 4.1% against the dollar after a flash crash. The dollar slipped against the Japanese yen buying ¥112.65 after initially jumping to a 12-week high, compared with ¥112.82 late Thursday. The dollar was little changed against the yen on the week, gaining 0.1%.

For the euro, investors were looking at data that showed a surge in German manufacturing orders in August, which more than made up for an unexpected fall in July, and are beginning to focus on potential moves by the European Central Bank to taper its quantitative easing program. The euro strengthened as the session went on, last changing hands at $1.1735, up from $1.1711 late Thursday in New York, after earlier hitting its lowest level since July. On the week, the euro shed 0.7%. Against the Swiss franc the dollar was little changed at 0.9782 francs. On the week, the buck jumped 1.1% against the franc, making it the second biggest weekly move among the main dollar pairs.