Dollar index fluctuates after mixed U.S. jobs data

Dollar index fluctuates after mixed U.S. jobs data

dollarThe U.S. dollar fluctuated against a basket of major currencies on Friday after mixed U.S. jobs data that failed to clear signs on the health of the economy.

American employers added 223,000 jobs in April, slightly lower than analysts’ forecasts of 224,000 jobs. The previous reading was revised down sharply to 85,000 from 126,000.

In fact, March’s reading moves in line with the first-quarter GDP, which showed a slowdown to 0.2 percent.

Average hourly earnings increased 0.1 percent in April, compared to both prior and expected readings of 0.3 percent and 0.2 percent respectively.

Unemployment rate matched forecasts, as it dropped to 5.4 percent in April from 5.5 percent a month earlier.

Investors’ reaction to the mixed data caused a fluctuation in the dollar index, as it climbed to 95.16 while also set a new low of 94.24.

The nonfarm payrolls report failed to give indication about whether the Fed would raise interest rate in June, or it will postpone the decision until late this year.

Both ADP employment for April released on Wednesday and jobless claims for last week missed analysts’ forecasts.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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