An already weak US dollar took another hit early Friday (October 8) morning following the latest report on jobs. According to new Labor Department numbers, 95,000 workers were cut by US employers during the month of September.

The number of new jobless claims was far worse than analysts had predicted. Bloomberg News, for instance, forecasted just 5,000 new job cuts in its survey of economists.

Unemployment was somewhat of a surprise at 9.6 per cent, which matched the report from August. This was at the low end of the range most analysts expected. Some predictions called for unemployment to be as high as 9.8 per cent.

The yen continues to strengthen amid reports that Japan and other Asian countries are trying to intervene in currency markets ahead of the G7 economic summit in order to stave off further strengthening.

The dollar fellow below 82 yen in early Friday morning trade to a low of 81.93, before bouncing to a current price of 82.12. These are low values for the dollar-yen not seen in over 15 years.

European currencies moved higher quickly on the data, but have since fallen due to profit taking. A euro now nets $1.3874, after getting as high as $1.3964 in early Friday trade. The British pound is at $1.5874 after it made a brief move above $1.59 to $1.5902.

With job news still a concern, Federal Reserve Chairman Ben Bernanke said earlier this week that consumer confidence is stifling growth in the economy.

Consumer spending accounts for close to 70 per cent of the US economy. Consumer confidence readings have been disconcerting of late, given that businesses are not likely to retain employees and expand hiring if consumers are not buying products and services.

This quandary has prompted renewed comments from some analysts and economists that a double-dip recession is imminent.

The dollar appears to be in more trouble in the short-run based on the latest round of economic data and the Fed’s emphasis on taking steps necessary to spark the recovery effort.

Neil Kokemuller

LiveCharts.co.uk

Neil Kokemuller is an Associate Professor of Marketing at Des Moines Area Community College in Des Moines, Iowa, USA. He has a MBA from Iowa State University. He is also in house stock market commentator at Live Charts UK, where you can find real time charts and share prices .

Please note: The information provided in this article is intended for informational and entertainment purposes, and not as advice for financial decisions or investments. Actions taken on the basis of the information shared is at the sole risk and discretion of the individual. Currency investment poses significant risk of loss.

Live Charts Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.