U.S. Dollar Slips After Rising to Near Three-Week High on Jobs Report
Investing.com - The U.S. dollar slipped on Monday in Asia after jumping to a three-week high on a better-than-expected jobs report that dampened expectations the U.S. Federal Reserve will cut rates aggressively to combat a slowing economy.
Nonfarm payrolls rose by 224,000 in June, well above consensus expectations for 160,000 and a sharp rebound from a downwardly-revised 72,000 in May.
The data boosted the greenback on Friday and sent the U.S. currency to a three-week high of 96.968, before giving up some of its gains today.
The U.S. Dollar Index last traded at 96.792 by 1:23 AM ET (5:23 GMT), down 0.1%.
The solid data reduced chances of a Fed rate cut at the end of July. Previously, traders expected the central bank to cut rates by 25 basis points in July and a total of three rate cuts this year to mitigate the effects of the U.S.'s various trade disputes.
The EUR/USD pair was little changed at 1:1227. Data last week showed that German industrial orders fell far more than expected in May.
The country’s Economy Ministry also warned that this sector will likely remain weak in the coming months.
The USD/JPY pair inched down 0.1% to 108.31. The Cabinet Office reported that the country’s core orders fell 7.8% in May from the previous month.
The reading compared with an expected decline of 4.7% and followed a 5.2% rise in April.
Separately, Bank of Japan (BOJ) Governor Haruhiko Kuroda said he expects the country's economy to grow moderately and gradually push inflation toward the central bank's 2% target.
"The BOJ will make necessary policy adjustments to sustain the economy's momentum towards achieving its inflation target," Kuroda said in a speech on Monday.
The AUD/USD pair traded 0.2% higher to 0.6990.
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