The dollar fell slightly after a jobs report for March showed than U.S. job gains were better than expected during the month. Wage pressures were muted.
Nonfarm payrolls rose by 196,000 jobs last month. Data for February was revised modestly up to show payrolls rising by 33,000 jobs instead of the previously reported 20,000. February job gains were the smallest since September 2017.
Wage gains also slowed in March and more people dropped out of the labor force. Average hourly earnings increased by four cents, or 0.1% in March after jumping 0.4% in February.
Reaction in the dollar was relatively muted, and swung between small gains and losses. The dollar index against a basket of six major currencies was last down 0.06% on the day at 97.256.
Investors are focused on data for further clues about Federal Reserve policy after the U.S. central bank stunned markets in March by abandoning projections for any interest rate hikes this year. Trade talks between the U.S. and China are also in focus as investors hope a deal between the countries may remove some global headwinds to growth.
U.S. President said on Thursday the United States and China were close to a trade deal that could be announced within four weeks. However, he warned Beijing that it would be difficult to allow trade to continue without a pact.
START TRADINGForex – Dollar fell slightly following nonfarm payrolls
Sterling strengthened on Friday as Prime Minister Theresa May asked the European Union to delay Brexit until late June. However, the British currency’s tentative moves reflected continued unease among investors. The impact of a long Brexit delay on sterling is unclear. The pound would gain if a delay led eurosceptic lawmakers to back the deal May negotiated with the EU or brought about a reversal of the 2016 Brexit referendum.
The euro rose slightly to 1.1229, its gains capped after data released on Thursday showed German industrial orders dropped in February.
The single currency also rose versus the Swiss franc. Trading down 0.1% at 1.1232, the franc has fallen back from its 2019 highs of 1.117 as broader risk appetite boosted the euro.
The Australian dollar, which tends to do well when sentiment towards China improves, rose 0.1 percent to $0.7121, adding to its gains this week.
Sources: Reuters, Investing, CNN money
PLEASE NOTE The information above is not investment advice.