FOREX – The US dollar fell to a six-week low after soft jobs data

* US jobs rose by 150,000 in October, less than expected * US interest rate futures no higher in December * Dollar index accelerates to biggest one-day drop since July * Dollar falls to two-week low against yen * Pound hits six weekly high vs dollar (adds new commentary, updates prices) Gertrude Chavez-Dreyfuss NEW YORK, Nov 3 (Reuters) – The dollar fell to a six-week low on Friday after data showed the world’s largest economy added fewer jobs than last year it expected This month, expectations are strengthening that the Federal Reserve will likely hold interest rates at a stable level again at its December meeting. The dollar index, a measure of the greenback’s value against six major currencies, fell 1.1% to 105.03 after earlier falling to 104.93, its lowest since Sept. 20. The index was on track for its biggest one-day decline since July. For the week, the dollar fell 1.4%, on pace for its worst weekly performance since July. The data showed nonfarm payrolls rose by 150,000 jobs last month. September data was revised lower to show 297,000 jobs created instead of 336,000 as previously reported. “In my view, the Fed’s rate hike cycle is over and this reaffirms the view that the Fed should not raise rates again,” said Ronald Temple, chief market strategist at Lazard in New York. “When you look at new jobs, 150,000 versus the expected 180,000 — that’s still a strong number for job creation, but more in line with what the U.S. economy needs given population growth and steady unemployment. That’s a Goldilocks number ,” he said, suggesting it bodes well for the economy. Against the yen, the dollar fell to a two-week low of 149.18 and was last down 0.8% at 149.315 yen, capping a tumultuous week in which the Japanese currency touched a one-year low against dollar and a 15-year low. against the euro. For the week, the dollar fell 0.2% against the yen, its biggest weekly loss since late July. The yen’s earlier week’s decline came after the Bank of Japan adjusted its yield control policy on Tuesday curve, but not by as much as markets expected.Central Bank Governor Kazuo Ueda will continue to unwind his ultra-loose monetary policy and seek to exit a decade-long accommodative regime next year, Reuters reported on Thursday, according to six sources familiar with the central bank’s thinking. Other economic data released on Friday also depicted a slowing economy. The U.S. services sector slowed for a second straight month in October, according to the Institute for Inventory Management (ISM). Its non-manufacturing PMI fell to a five-month low of 51.8 from 53.6 in September. The services PMI has been falling since hitting a six-month high in August. Elsewhere, the euro was last up 1.1% at $1.0735, on course for a weekly gain of 1.6%, the biggest in four months, on gains earlier in the week. Sterling rose 1.5% against the dollar to $1.2381 after earlier hitting a six-week high of $1.2389. The British pound posted its best daily performance since January. It is also set for a weekly gain of 2.4%, the most since November 2022. The decline in the dollar reflects a decline in US Treasury yields. The benchmark U.S. 10-year yield fell to a five-week low of 4.484% and headed for a retreat of more than 30 basis points, the most since March 2020. This week’s drop was triggered by a combination of the U.S. Treasury’s announcement of smaller-than-expected increases in longer-term Treasury stocks and Fed Chair Jerome Powell appeared to be less hawkish than markets expected at his press conference after Wednesday’s Fed meeting. However, he left the door open to further increases in borrowing costs in line with the economy’s resilience. Data on sectors after jobs and services now pegs markets at less than a 5% chance of a rate hike in December, according to CME’s FedWatch tool, compared with nearly 20% late Thursday. ================================================== == ====== Currency Bid Prices at 15:00 (1900 GMT) Description RIC Last Close US Change Pct YTD Pct High Bid Low Bid Previous Session Change Dollar Index 104.9900 106.2000 -1.12% 1.449 % +106.22970303006 EUR, +104 USD $1.0623 + 1.06% +0.19% + $1.0747 + $1.0616 149.3100 USD/JPY 150.4700 -0.77% +13 .88% +150.5150 +149.1800 EUR/Yen 160.69.23% 160.6% + 232% 160.6% + 60.4000 +159.6100 USD/Swiss 0.8980 0.9060 -0 .88% – 2.89% +0.9074 +0.8966 Sterling/$1.2381 $1.2202 +1.47% +2.38% +$1.2389 + $1.2185/C 1.3659 1.3738 -0.376% +1.375% +1.375% +0.375% + 0.836% + 0.836% +2.38% + $1.2389 + $1.2185 lar $0.6516 $0.6434 + 1 .27% -4.41% +$0.6518 +$0.6420 Euro/Switzerland 0.9640 0.9623 +0.18% -2.58% +0.9647 +0.9616 Euro/Sterling 0, 8671 0.8703 -0.37% -1.96% +0.8721 +0.8721 N879990 +$0.865 N5Z94 +$0.861 0.58% + $0.6000 + $0.5885/dollar dollar/Norway 11 .0250 11.1590 -1.16% +12.39% +11.1790 +11.0300 Euro/Norway 11.8400 11.8470 -0.06% +12.81% +11.9021 +11.81351 11.8351 160.06 USD % +4.49% +11.1230 +10.8706 Euro/Sweden 11.6768 11.7983 -1.03% +4.73% +11.8115 +11.6730 (report Gertrude Chavez-Dreyfuss; Additional reporting by Sruthi Shankar in Bengalar and Alun John in London; Edited by Christina Fincher, Andrea Ricci and Rod Nickel)

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