Dollar weakens after US jobs report

The dollar fell on Friday after data showed the United States added more jobs than expected last month, but suggested signs of slowing with a rising jobless rate and lower wage inflation.

Nonfarm payroll jobs rose by 261,000 last month, the Labor Department’s employment report showed, and data for September was revised up to show 315,000 jobs added, rather than 263,000.

However, the unemployment rate rose to 3.7% from 3.5% in September. Median hourly earnings rose 0.4% after rising 0.3% in September, but wage growth slowed to 47% year-on-year in October, after rising 5% in September.

“The US labor market is strong and the data was goodsaid Naeem Aslam, chief market analyst at Avatrade in London.

“However, the devil is in the details, as the unemployment rate has risen, which may slow the dollar’s rise. But for now, one thing is clear: the Fed has a clear path to continue its aggressive monetary policy.”, he added.

The dollar was down 0.8% at 147.11 yen, while the euro was up 1.3% at $0.9870.

Fed funds futures pointed to a 58% chance of a 75 basis point rate hike next month and a 43% chance of a 50 basis point hike.

With information from Reuters