© Reuters.
Investing.com – The u.s. dollar is lower Friday after the u.s. economy created fewer jobs than expected last month.
The dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.55%, reaching its lowest level in seven weeks, 96,465, at 16: 30.
The u.s. economy created 75,000 jobs in may, much less than expected, while wage inflation is reduced, reported the Department of Labor.
The data reinforce expectations the Fed will reduce rates when the job market peaked. The expectations were already larger with regard to the reduction of rates by the central bank because of the trade tensions between the United States and China, and forecasts of growth reduced in the world.
The Fed chairman Jerome Powell, has indicated this week that the central bank “would be an appropriate way to support the economic expansion”.
The possibility of a rate cut in June has increased by 20% previously, to 33.3%, whereas expectations of a rate cut in December is 98% according to the {{frl || Barometer of Fed rate}} d’Investing.com.
The dollar fell against the japanese yen refuge, with USD/JPY down 0.35% to 108,03.
At the same time, the euro has reached its highest level in seven weeks, with a rise of EUR/USD of 0.58%, to 1,1340.
The british pound was also higher, with GBP/USD winner 0.41% at 1.2751, while USD/CAD slipped by 0.6% to 1.3281.
