Investors awaited the crucial U.S. jobs report, which was expected to show job creation has slowed, highlighting concerns about the US economy status.
The U.S. Labor Department’s non-farm payrolls data was likely to show jobs growth slowed sharply last month. The unemployment rate ticked up from near a 50-year low of 3.5%, raising slightly to 3.6%. Although the report was strong, hiring has slowed down in 2019 compared with 2018, averaging just 167,000 jobs per month versus 223,000 last year.
The pace of average hourly earnings picked up a bit, rising one-tenth of a percent to a year-over-year 3% gain.
Forecasts that the U.S. economy created 89,000 new jobs in October, fewer than the 136,000 created in September, were not confirmed. Overall, the October report exceeded the estimates. The US economy added 128,000 jobs in October. The United States lost 36,000 manufacturing jobs last month, impacted primarily by the autoworkers strike.
Also, of interest to investors is the Institute for Supply Management’s (ISM) manufacturing report. Forecasts are the PMI index rose to 48.9 in October from a 10-year low of 47.8 in September.
The news comes amid mixed headlines on the trade war between Washington and Beijing.
On the EU front, Christine Lagarde began her presidency of the European Central Bank. Focus turns to the policy outlook under Lagarde, whose eight-year term began on Friday. Lagarde will make her first public speech as ECB chief on Monday.
START TRADINGForex – US economy added 128,000 jobs in October
The US dollar rose on Friday after data showed that U.S. jobs growth slowed less than expected in October. The dollar index against a basket of six major currencies rose as high as 97.45. The greenback was up from 99.27 before the data, before retracing to 97.30, up 0.02% on the day.
The dollar lost against the yen, last trading at 107.89 yen, a three-week low. The U.S. currency is headed for a 0.6% decline against the yen this week.
The New Zealand dollar jumped to a seven-week high of 0.6443 against the dollar, and was last up 0.4% at 0.6436.
The euro kept its gains against the dollar on Friday as investors expect that the United States will follow the economic slowdown trend. The euro was last up 0.1% at $1.1165, close to a 10-day high.
Sterling rose 0.2% to $1.2961, beneath the $1.30 benchmark, heading to a 1% weekly gain. The British currency was last at 86.09 pence per euro, headed for a 0.2% rise this week. Against the euro, sterling was flat.
Oil prices rose but set for a slide of around 3.5% on the week hurt by rising global supply and concerns about future demand. Brent was up 75 cents at $60.37 a barrel by 1341 GMT but remained on course for a drop of about 2.6% for the week. WTI crude rose 84 cents to $55.02 a barrel, a weekly loss of more than 2.8%.
Gold eased following strong Chinese factory data. Spot gold was a bit lower at $1,513 per ounce, while U.S. gold futures were unchanged at $1,515.30 per ounce. Spot gold is set to rise about 0.6% on a weekly basis.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money