The dollar is retreating from recent gains against its major competitors at the end of the week, following the release of the weaker than expected jobs report for August. The situation in Syria also remains a concern among investors, especially after comments made today by Russian President Putin.
Putin stated at the G20 Summit in St Petersburg on Friday that Russia would continue to aid Syria if the country is attacked.
With job growth in the retail and healthcare sectors partly offset by the loss of jobs in the information sector, the Labor Department released a report on Friday showing that U.S. employment rose by less than expected in the month of August.
The Labor Department said non-farm payroll employment increased by 169,000 jobs in August compared to economist estimates for an increase of about 180,000 jobs.
The report also showed a notable downward revision to the pace of job growth in July, with the revised data showing an addition of 104,000 jobs compared to the previously reported increase of 162,000 jobs.
Despite the weaker than expected job growth, the unemployment rate dipped to 7.3 percent in August from 7.4 percent in July. Economists had expected the unemployment to come in unchanged.
The dollar rose to an early month and a half high of $1.3104 against the Euro on Friday, but has since dropped to around $1.3170.
Germany’s industrial production decreased at a notably faster rate than economists had forecast in July, latest data showed Friday. Industrial production fell a seasonally and calendar-adjusted 1.7 percent in July from the previous month, marking a deterioration from June’s 2 percent increase, preliminary data released by the Federal Ministry of Economics and Technology showed. Economists had forecast production to record a 0.5 percent contraction in July
Germany’s foreign trade surplus decreased more than forecast by economists in July amid a fall in exports, data from the Federal Statistical Office revealed Friday. The trade surplus fell to EUR16.1 billion in July from EUR 17 billion in June. Economists had forecast a surplus of EUR 16.5 billion. In calendar and seasonally adjusted terms, the surplus was EUR 14.5 billion.
Confidence among French households improved more-than-expected in August, latest data showed Friday. The headline consumer confidence index moved up to 84 in August from 82 in July, survey data released by statistical office Insee revealed. Economists were looking for a score of 83. In June, the reading was 79.
France’s trade deficit increased in July from a month earlier, data published by the country’s customs office showed Friday. The trade gap widened to EUR 5.109 billion in July from EUR 4.48 billion in June. The shortfall was forecast to increase to EUR 4.75 billion.
The greenback climbed to an early high of $1.5560 against the pound sterling Friday, but has since retreated to around $1.5635.
Industrial production in the U.K. stagnated in July after a notable improvement in June, while growth in manufacturing sector slowed data from the Office for National Statistics showed Friday. Industrial production remained unchanged in July from June in contrast to forecasts of 0.2 percent increase. This comes after a strong 1.3 percent expansion.
The U.K.’s external trade in goods resulted in a higher trade deficit in July than a month earlier, data from the Office for National Statistics revealed Friday. The shortfall in July amounted to GBP 9.9 billion, higher than GBP 8.2 billion recorded in June.
The Bank of Japan has upgraded its assessment of capital spending by companies amid further improvement in corporate profits, a monthly report from the central bank showed Friday.
The BoJ noted that “business fixed investment is starting to pick up as corporate profits have improved”, upgrading its assessment from August when it said business investment has stopped weakening and is showing some signs of picking up.
The buck has pulled back from yesterday’s high of Y100.214 against the Japanese Yen to around Y98.950 on Friday.
A leading indicator of the Japanese economy increased in July, but to a slightly lesser degree than economists had forecast, latest data showed Friday. The leading economic indicator, a measure of overall performance of the economy relative to trend, moved up to 107.8 in July from 107.2 in June, preliminary estimates from the Cabinet Office revealed. Economists had forecast the index to rise to 107.9.