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Dollar lost ground to the Euro & GBP on Friday, US Jobs report missed expectations

USD Lost Ground To The EUR & GBP On Friday, EUR/GBP, US Jobs Report Missed Expectations (USD/JPY)| FXMAG.COM
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Table of contents

  1. USD loses ground against the EUR
    1. BoE predict a UK economic slump
    2. The wedge between the USD & JPY

Summary:

  • The US Dollar weakens in the wake of the US jobs report.
  • The British Pound may be headed for significant losses this November against the Dollar, the Euro.
  • USD/JPY wedge continues to grow.

USD loses ground against the EUR

The market is reflecting mixed signals for this currency pair. Following the release of U.S. labor market data that, while still positive, reaffirmed a pattern of decreasing employment gains and pay growth, the Dollar dropped 1% against the Pound and 1.20% against the Euro. In October, the economy added 261K jobs, much exceeding the consensus estimate of 193K, while September's number was impressively raised up to 315K. Overachieving forecasts of 0.3%, average hourly earnings increased by 0.4%, suggesting persistent wage pressures that will support future domestic inflationary pressures.

This information supports the Federal Reserve's statement from mid-week that it is too early to think about stopping its rate hike cycle, which raised exchange rates for the Dollar globally. Since the data do not indicate that the themes of previous months are likely to abruptly change, the Dollar's decline could instead be the result of profit-taking after Wednesday's gains.

usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 1usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 1 EUR/USD Price Chart

BoE predict a UK economic slump

The market is reflecting bullish signals for this currency pair. As investors respond to the Bank of England's most recent gloomy economic forecasts, the British Pound may be headed for significant losses this November against the Dollar, the Euro, and a variety of other major currencies. The Bank hinted that the UK economic slump, which it has been anticipating for some time, may now be considerably severe than initially anticipated in its November Monetary Policy Report.

usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 2usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 2 EUR/GBP Price Chart

The wedge between the USD & JPY

The market is reflecting mixed signals for this currency pair. Due to recent currency interventions, USD/JPY has been an interesting pair, with downmoves unable to gather significant organic impetus. However, a dollar bid continues to put the majority of currencies under pressure, making it challenging to dismiss gains as durable given the wider technical context.

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The rising wedge that had developed over the previous few months indicated that at some point we would either have a breakdown that would lead to an unwinding that would cause USD/JPY to plummet by a significant amount or a shot higher that would conclude the run upward.

usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 3usd lost ground to the eur gbp on friday eur gbp us jobs report missed expectations usd jpy grafika numer 3 EUR/GBP Price Chart

Sources: finance.yahoo.com, poundsterlinglive.com, dailyfx.com


Rebecca Duthie

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance. 


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