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Dollar traded lower after the release of US jobs data for August

2019-09-06 01:17 pm | Resource: الاخبار | No Views : 82

Dollar traded lower after the release of US jobs data for August

The dollar traded lower after the US jobs data for August at 14:30 am CET on Friday as the dollar fell against major currencies. How did traders watch the People's Bank of China cut reserve requirements to stimulate liquidity in an economy hit hard by trade wars?

China's central bank cuts reserve requirements

The People's Bank of China has decided to cut its reserve requirement ratio (RRR) by 50 basis points, which will come into effect on Sept. 16, the People's Bank of China said in a statement on Friday.

The bank has resorted to its third cut in RRR so far this year as the economy struggles to maintain steady growth as trade disputes with the United States have hurt the manufacturing sector. In order to increase lending to SMEs, the reserve ratio of some commercial banks has been reduced by one percentage point. The reduction will be carried out in two phases, each 0.5 percentage points, the first on October 15 and the second on November 15.

The central bank said the RRR cut would release 900 billion yuan of liquidity in the financial system. The reduction is aimed at providing funds for lending and reducing financing costs. The bank said in a separate statement that the reduction of interest rates on foreign currencies does not overwhelm the economy stimulus and has not changed the direction of stable monetary policy.

Non-farm payrolls in the US rose by 130,000 in August

On the data front, the US Bureau of Labor Statistics reported on Friday that the US non-farm employment rate rose to 130,000 in August, missing expectations of around 30,000. Meanwhile, the unemployment rate was unchanged at 3.7%.

Average hourly wages rose 3.2% year-on-year in line with expectations. At the same time, unemployment rates among the main labor groups showed a slight change compared to July. In addition, the labor force participation rate was little changed, rising to 63.2% compared with the July figure of 63%.

Dollar Falls after US Jobs Data
  • The dollar traded lower against the Japanese currency to 106.95 yen
  • The US currency fell against the Swiss franc to 0.9900 franc levels.
  • The dollar fell against the British currency to 1.2300 pounds
  • The dollar hit a low of 1.1027 against the euro around 14:34 CET.


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