FOREX-Dollar rises after U.S. jobs come out better than worst expectations

Gertrude Chavez-Dreyfuss

* U.S. jobs weaker than expected, but solid overall

* Rate futures pare bets on Fed easing at two upcoming meetings

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Recasts, adds U.S. jobs data, new comment, FX table, updates prices, changes byline, dateline; previous LONDON) NEW YORK, Oct 4 (Reuters) - The dollar rose on Friday after three straight days of losses, as investors took comfort in a U.S. non-farm payrolls number which, while below the consensus forecast, was not as bad as the market initially feared. The greenback hit session highs against the yen and euro following the jobs report, after trading lower for most of the session. Data showed that U.S. nonfarm payrolls increased by 136,000 jobs last month. August data was revised to show 168,000 jobs created instead of the previously reported 130,000 positions. Economists polled by Reuters had forecast payrolls would increase by 145,000 jobs in September. The unemployment rate dropped to a near 50-year low of 3.5%. "Going into it and considering what we saw with the two ISM surveys, it could have been a lot worse. It's probably just right for the market and not as dire as many people expected," said John Velis, global macro strategist, at BNY Mellon in New York. "It doesn't mean that the economy and the jobs market are falling off a cliff. On the other hand, it's not strong enough that it's going to take out this additional Fed easing that has been priced into the curve the last few days." A drop in U.S. unemployment in September pushed traders of U.S. short-term interest rate futures on Friday to pare bets the Federal Reserve will cut rates at both of its two upcoming meetings. The jobs data was a big relief to dollar bulls after two weak reports that heightened U.S. recession fears. On Thursday, a survey from the U.S. Institute for Supply Management (ISM) showed its non-manufacturing activity index falling to 52.6 in September, the lowest since August 2016 and down from 56.4 in August.

The non-manufacturing data came on the heels of ISM's survey on Tuesday on manufacturing that showed activity plunging to more than 10-year lows. In morning trading, the dollar index was up 0.1% at 98.933, rising slightly against the yen to 106.98 yen. The euro was modestly higher though versus the dollar at $1.0973. Elsewhere, the Australian dollar and the New Zealand dollar were off their highs after the U.S. report.


Currency bid prices at 9:30AM (1330 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low BidPrevious Change


Euro/Dollar EUR= $1.0969 $1.0964 +0.05% -4.36%+1.0997 +1.0958Dollar/Yen JPY= 106.9500 106.9000 +0.05% -3.00%+107.1200 +106.6000Euro/Yen EURJPY= 117.36 117.20 +0.14% -7.02%+117.4600 +117.0900Dollar/Swiss CHF 0.9947 0.9991 -0.44% +1.36%+1.0007 +0.9930Sterling/Dollar GBP= 1.2300 1.2328 -0.23% -3.58%+1.2356 +1.2282Dollar/Canadian CAD= 1.3302 1.3335 -0.25% -2.46%+1.3339 +1.3299Australian/Doll AUD= 0.6762 0.6741 +0.31% -4.06%+0.6767 +0.6739


Euro/Swiss EURCHF= 1.0913 1.0951 -0.35% -3.03%+1.0977 +1.0910Euro/Sterling EURGBP= 0.8917 0.8889 +0.31% -0.75%+0.8925 +0.8881NZ NZD= 0.6326 0.6300 +0.41% -5.82%+0.6336 +0.6297


Dollar/Norway NOK= 9.1018 9.1234 -0.24% +5.36%+9.1328 +9.0911Euro/Norway EURNOK= 9.9867 10.0084 -0.22% +0.81%+10.0195 +9.9807Dollar/Sweden SEK= 9.8515 9.8683 -0.10% +9.90%+9.8720 +9.8334Euro/Sweden EURSEK= 10.8096 10.8205 -0.10% +5.32%+10.8247 +10.8030

(Reporting by Saikat Chatterjee; Editing by Peter Graff and Chizu Nomiyama)