Dollar slips as NFP data simmers rate hike expectations


The dollar slipped almost half a percent versusthe euro and the yen on Monday after soft U.S. jobs data simmered expectations that the Federal Reserve will continue with its path of raising interest rates after a highly likely move next week.

The Chinese yuan fell following weak trade and inflation data over the weekend, while the British pound hit an 11-week low against the euro as Prime Minister Theresa May’s deal to exit the European Union looks set to be rejected by parliament on Tuesday.

USD/JPY fell a quarter percent to 112.43, edging near Thursday’s 5 1/2-week low of 112.23.

U.S. non-farm payrolls increased by 155,000 jobs last month, lower than economists’ median forecast of 200,000 jobs and the wage increase was softer than expected even though its annual rise remained near the highest level in almost a decade.

Some Fed policymakers have struck a cautious tone about the economic outlook, possibly flagging a turning point in its monetary policy.

Investors are growingly worried that rising tensions with China could take a toll on the U.S. economy.

EUR/USD climbed up 0.43 percent to 1.1425, despite the “yellow vest” anti-government protesters wreaking havoc in Paris during the weekend.

In London, Theresa May faces an internal revolt against her Brexit deal ahead of the crucial vote in the parliament on Tuesday. Despite the bleak outlook, May plans to push ahead with the vote while senior lawmakers in her own party piled pressure on her to go back to Brussels and seek a better offer.

A rejection could throw plans for Britain’s exit into turmoil and leave her own political future hanging in the balance.

Cable edged up 0.13 percent to 1.2742. EUR/GBP traded near its lowest since late September, at 89.65.

Dollar lifted by Fed expectations, trade tensions

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