- UAE Central Bank Stands by Banks Amid Dubai Crisis
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- US Shoppers Spent Less Over Black Friday: NRF
- US Senator Opposes Fed Chief Bernanke Renomination
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- US Treasury Wants Banks to Do More to Ease Mortgages
- Tiger Has Nothing More to Say to Police: Agent
- Danish Draft Urges 50% Global Emissions Cut by 2050
- Next Week: Cash In Now Or Wait For A Santa Rally?
- Tiger Woods Wants to Protect Family Privacy: Agent
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- South Korea Sees Exports Bouncing, but Risks Remain
- UAE Stocks Tumble on Dubai Woes; Asia Rebounds
- Japan Won't Intervene to Weaken Yen: Finance Minister
- Dubai is Harsh Reminder of Prolonged Global Recovery
- Japan Industrial Output Edges Up But Yen May Weigh
Text Size 
 |
The dollar eked out a gain against most major currencies other than the yen after the government said the unemployment rate rose to 10.2 percent, the highest since April 1983.
Concerns about the recovery in the world's largest economy typically send investors into the relative safe haven of U.S. government debt on the assumption U.S. taxpayers will always repay it.
That stokes demand for the dollars to buy that debt. The continued negative trends in the U.S. employment data will keep pressure on the dollar. That pressure will likely continue until there is improvement on the road to recovery.
"A bad number and the dollar shows some strength next week," said Dan Cook, senior market analyst at IG Markets in Chicago.
Analysts cautioned that the effect of the jobs data will fade as the week moves closer to the most significant data of the week, the Reuters/University of Michigan preliminary November consumer sentiment survey on Friday.
"Traders will soon revert to the traditional view of employment as a lagging indicator and most other numbers are recovering," said Joseph Trevisani, senior market analyst at FX Solutions in Saddle River, New Jersey. "The overall picture is still recovering mildly and that economic sentiment should reassert by the latest Wednesday, and probably sooner."
If investors return to the belief the U.S. and global economies are recovering, they will swing back to increased risk tolerance, raising demand for higher-yielding assets and the currencies to buy them at the expense of the greenback.
For the week, the euro [EUR=
Loading...
()
] rose 0.9 percent against the dollar, despite a 0.2 percent drop on Friday. The dollar rose 0.2 percent against the yen [JPY=
Loading...
()
], although most of the week's gains were lost Friday in a 1 percent decline after the jobs number.
The dollar index, a measure of the dollar against a basket of six currencies, fell 0.7 percent for the week.
Data Calendar
Other than the hangover from U.S non-farm payrolls, investors will be looking for factors other than data to explain foreign exchange market moves in the early part of the coming week, with a relatively light U.S. economic calendar ahead.
Thursday will bring the release of weekly initial jobless claims, closely scrutinized in recent months for clues on the strength of the U.S. economic recovery.
The Federal Budget for October will be released the same day, with expectations for a $155 billion deficit.
Friday marks the heaviest day of the week, with October import and export prices, September international trade and the preliminary reading of the Reuters/University of Michigan preliminary November consumer sentiment survey.
October import prices are expected to rise 1.0 percent and export prices to rise 0.2 percent.
September international trade data is expected to show a $31.5 billion deficit.
The Reuters/University of Michigan preliminary sentiment survey is forecast at 71.0, up from 70.6 in the final reading for October.
- These four sectors will be the next to lead the market.
- Zhu Zhu Pets are this year's must-have toy, fetching $40 or more on eBay.
- From the why-didn’t-I-think-of-that file, we present Jason Sadler, a man whose job is wearing T-shirts.
- It may be the most unusual guide to business you'll read.
- Shopping for a gadget hound? The choices can be baffling. Here are a few that should be a hit.
- "The Who" will be the halftime act for Super Bowl XLIV on Feb. 7 in Miami. Is the NFL behind the times?
Data is a real-time snapshot *Data is delayed at least 15 minutes