US Dollar extends losses against euro in wake of poor jobs report

New York (Apr 6)  The euro traded higher against the dollar Monday, extending gains scored Friday after a weaker-than-expected jobs report saw investors push back expectations for a rate hike by the Federal Reserve.

The euro EURUSD, +0.31%  traded at $1.1030, just under its highest level in two weeks, compared with $1.0972 in North American trade late Friday. The U.S. currency USDJPY, +0.07%  was up versus the Japanese yen at ¥119.07 compared with ¥118.93 late Friday in New York.

Traders pushed the euro higher after New York Federal Reserve President William Dudley said that the strong dollar has given a “significant shock” to the U.S. economy, and after the Institute for Supply Management’s nonmanufacturing index showed slowing growth in the U.S. service sector.

Matt Weller, a senior technical analyst at, said that the euro’s gains are a symptom of the market pricing in a lower probability that the Federal Reserve will raise interest rates in the third quarter for the first time in nearly a decade.

“After shedding over 3,500 pips in less than a year, the world’s most widely-traded currency pair is seeing its largest rally since topping above 1.40,” Weller said in a note to clients.

The ICE dollar index DXY, -0.13% a measure of the U.S. currency against a basket of six major rivals, was down 0.2% to 96.3920.

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Trading activity in Asia and Europe was subdued, with many traders still away for the Easter vacation and other public holidays.

The dollar USDJPY, +0.07%  traded at 118.99 yen, little-changed from Friday afternoon.

Friday’s tumble in the dollar was the biggest fall in almost two weeks following U.S. labor data for March that showed nonfarm payrolls grew by 126,000, about half the increase forecast by economists in a Wall Street Journal survey.

Read: Poor jobs report blurs economic outlook

The WSJ Dollar Index BUXX, -0.25% a measure of the dollar against a basket of major currencies, was down 0.3% at 86.37.

Source: MarketWatch