FOREX-Dollar rallies broadly after U.S. jobs data

Fri Dec 7, 2012 8:49am EST

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By Wanfeng Zhou
    NEW YORK, Dec 7 (Reuters) - The dollar rallied against the
euro and yen on Friday after data showed U.S. employment grew
faster than expected in November.
    Nonfarm employment increased by 146,000 jobs last month, the
Labor Department said on Friday, defying expectations of a sharp
pull-back related to superstorm Sandy. Job growth for previous
months was revised lower 
    "Overall, this is a pretty good number," said Kathy Lien,
managing director of BK Asset Management in New York. "The
dollar is rallying right now, and that should last, particularly
against the yen.
    "The real question though is whether this changes the Fed's
attitude toward more stimulus. It doesn't remove the need for
stimulus but might convince the Fed to opt for a smaller
program," she added.
    The jobless rate fell to 7.7 percent last month, the lowest
since December 2008. But the drop was because people gave up the
search for work, which does not bode well for the economy.
    The euro fell to a session low of $1.2878 on Reuters data,
matching the low set on Nov. 28. It was last down 0.6 percent at
$1.2884. 
    The dollar rallied to 82.82 yen, matching a near
eight-month high set on Nov. 22. It was last at 82.76 yen, up
0.5 percent.
    "Despite the projected effects of Hurricane Sandy, job
production in November was on a par with the prior three months.
That is a good sign for December and the first quarter," said
Joseph Trevisani, chief market strategist at Worldwide Markets
in Woodcliff Lake, New Jersey.
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