US payrolls miss at 29K and the Dollar Index drops below 102.00
US employers added 29K jobs in September against a forecast of 90K, and July and August were revised down by a combined 60K. The unemployment rate rose to 4.2%, and hourly pay grew 3.0% over the year against a 3.2% forecast.
In September, US employers added 29,000 jobs, below the forecast of 90,000, with the unemployment rate increasing to 4.2%. Hourly pay growth, meanwhile, increased by 3% over the year, exceeding expectations. The Dollar Index dropped below 102.00, influenced by revised July and August employment figures. The two-year Treasury yield, a key indicator of Fed expectations, also declined.
With a lower yield, the Dollar's appeal to foreign investors diminishes, as seen in its underperformance against the Euro, which makes up 57.6% of the Index. The Dollar Index rallied before the report, peaking near 102.10, but fell back to 101.80 shortly after, failing to sustain a bounce above 102.00. The index has since recovered slightly, currently trading near 101.90.
The US Dollar remains the world's most heavily traded currency, accounting for over 88% of global foreign exchange turnover. The Federal Reserve, through its monetary policy tools like interest rate adjustments, plays a crucial role in determining the Dollar's value.
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Also reported by 2 other outlets
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