The dollar turned lower against the other major currencies on Friday after a weaker than expected U.S jobs report for September dampened expectations for a rate hike by the Federal Reserve this year.
The Labor Department reported that the U.S. economy added just 142,000 jobs last month, well below expectations of the 203,000 expected by economists.
August’s reading was revised down to 135,000, from the initial reported figure of 173,000.
Average hourly earnings were flat month-on-month and the labor force participation rate fell to just 62.4%, down from 62.6% in August. The unemployment rate was unchanged at 5.1%, in line with forecasts.
The report underlined fears that a slowdown in global economic growth has spread to the U.S. economy and prompted investors to push back expectations on the timing of an initial rate hike by the Federal Reserve to early 2016.
Higher U.S. interest rates would boost the dollar, making the currency more attractive to yield seeking investors.
The pair’s rise from 0.6235 continued last week and initial bias this week remains on the upside as 21 and 55 EMA crosses upward. Also SSRC and MACD oscillators is still showing bullish continuation signals and more rise to 0.6559 if we get a break of 0.6455 resistance.
In the week ahead, investors will be focusing on Wednesday’s minutes of the Fed’s September meeting, when the central bank decided to delay hiking rates.