USD Exchange Rate Edges Higher Despite Weak Jobs Report

On Monday, the USD exchange rate edged higher despite the weak jobs report last Friday.

Against six major currencies, the US dollar index increased 0.03% to $94.10.

The American nonfarm payrolls sharply plummeted to 194,000 jobs from the previous figure of 366,000. 

Moreover, it significantly came in lower than the market expectation of 500,000. 

Correspondingly, the private nonfarm payrolls decreased to 317,000 jobs from the last data of 332,000.

At the same time, it sharply fell from the analysts’ estimate of 455,000.

Conversely, the unemployment rate is bullish towards the greenback as it declined to 4.80% from September’s figure of 5.20%. It also fell from the forecasted 5.10%.

Accordingly, the unimpressive economic report had little effect on the current move of the safe-haven currency. 

Consequently, traders were confident that the Federal Reserve would continue its tapering plans in November. 

In addition, they emphasized that the economy’s slowdown flagged that the central bank would not further hold on reducing its monthly bond purchases. 

Subsequently, the USD exchange could move higher if the current market sentiment continues to persist. 

Furthermore, investors eyed the release of the consumer price data on Wednesday.

The greenback could gain further if it would reveal an uptrend in inflation and boost an earlier rate hike by next year. 

Also, they looked forward to the scheduled Fed’s policy meeting in the first week of November.

Similarly, the British pound rose 0.41% to $1.37. Market participants anticipated that the Bank of England would increase interest rates to curb the soaring inflation in the United Kingdom.

Then, the euro currency hiked 0.13% to $1.16, while the Swiss franc plunged 0.02% to $0.93.

JPY to USD Exchange Rate Nears 3-year High

Against the USD, the yen boosted 0.53% to $112.85, hitting its 3-year high. 

Accordingly, the Japanese yen sensitively reacted to the recent hike of US Treasury yields. 

Consequently, the 10-year yields surged 0.04 points to a four-month high of 1.612% level, boosting the USD exchange rate. 

Subsequently, the EUR/JPY pair spiked 0.59% to $130.55 as the AUD/JPY pair strengthened 1.00% to $82.81. 

Then, the Canadian dollar weakened 0.14% to $1.25, reversing its Friday hike of 0.13%. 

Inversely, the Australian dollar climbed 0.48% to $0.73 per share as the New Zealand dollar rose 0.09% to $0.69.

Elsewhere, the Chinese yuan tumbled 0.10% to $6.44 as the South Korean won shed 0.19% to $1,194.49.