The Dollar weakened against a basket of major currencies on Friday afternoon as investors digested September’s mixed U.S. jobs data.
The U.S. economy added 134,000 jobs in September, missing the forecast of 185,000. Although under normal circumstances the headline disappointment may have triggered concerns over the U.S. jobs market, the figures were most likely distorted by Hurricane Florence. On the bright side there was an upwards revision to the previous month, with employers adding 270,000 jobs in August compared to the initial forecast of 201,000. Today’s key takeaway was the fact that the unemployment rate fell to its lowest level since 1969, while average hourly earnings rose 0.3% MoM and 2.8% YoY in line with expectations. With the Federal Reserve likely to recognize the slight blip in September’s NFP as the product of hurricane disruptions, the outlook for the Dollar points to further upside.
In regards to the technical picture, the Dollar Index remains bullish on the daily charts. However, sustained weakness below 96.00 could trigger a technical correction towards 95.30.
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