Daily Afternoon Report 02.10.2015

The dollar turned lower against the other major currencies on Friday, after data showed that the U.S. created far fewer jobs than expected last month, dampening optimism over the strength of the economy.

The dollar erased gains against the yen, with USD/JPY down 0.39% at 119.42, off highs of 120.41 hit earlier in the day.

The U.S. Labor Department reported that the economy added 142.000 jobs in September, confounding expectations for an increase of 203.000. The U.S. created 136.000 jobs in August, whose figure was revised from a previously estimated gain of 173.000.

The U.S. unemployment rate remained unchanged at 5.1% last month, in line with expectations.

The report also showed that average hourly earnings were flat in September, compared to expectations for a 0.2% rise and after an upwardly revised 0.4% increase the previous month.

The weak data-fuelled fresh uncertainty over whether or not the Federal Reserve will raise interest rates before the end of the year.

The dollar also turned lower against the euro, with EUR/USD advancing 0.73% to 1.1179.

Elsewhere, the dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.54% at 1.5215, and with USD/CHF retreating 0.86% to 0.9688.

Demand for sterling was boosted after research group Markit reported on Friday that its U.K. construction purchasing managers’ index rose to a six-month high of 59.9 in September from a reading of 57.3 in August. Analysts had expected the index to tick up to 57.5 last month.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.30% at 0.7050 and with NZD/USD climbing 0.82% to 0.6453.

The Australian Bureau of Statistics earlier reported that retail sales rose 0.4% in August, in line with expectations and after a 0.1% slip the previous month.

Meanwhile, USD/CAD slid 0.58% to trade at 1.3190.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was dropped 0.97% to 95.40, the lowest level since September 21.