May 3, 2019 / 3:12 PM / 22 days ago

FOREX-Dollar dips on focus on soft spots in U.S. jobs report

    * U.S. payrolls grow more than expected, jobless rate hits
3.6%
    * Euro rebounds from one-week lows following U.S. payrolls
data
    * Fed's Evans, Bullard raise concerns about low U.S.
inflation 
    * Aussie, Kiwi under pressure as rate-cut speculation builds
    * Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh

 (Updates market action, changes dateline, previous LONDON)
    By Richard Leong
    NEW YORK, May 3 (Reuters) - The dollar slipped against a
basket of currencies on Friday as traders focused on the weaker
aspects in the April U.S. payrolls report, brushing aside a
stronger-than-forecast in hiring and a drop in the jobless rate
to an over 49-year low.
    Traders turned their attention to the modest 0.2% monthly
pace of wage growth and the drop in the job participation rate,
which analysts blamed for the catalysts for some selling in the
greenback.
    "These soft details didn't provide a compelling reason to
add to already pretty big long dollar positions," said Eric
Viloria, currency strategist at Credit Agricole in New York.
    At 11 a.m. (1500 GMT), an index that tracks the greenback
against a basket of six currencies was 0.2% lower at
97.641, adding to its weekly decline of 0.3%.
    The euro was up 0.17% at $1.11915, while the dollar
was 0.25% weaker at 111.24 yen.
    The single currency was on track to gain 0.3% versus the
greenback, while the dollar was set to fall 0.2% against the
yen.
    Adding to the downward pressure on the dollar was a surprise
drop in a measure of U.S. services activity from the Institute
for Supply Management to a 20-month low in April.
    Moreover, comments from two regional Federal Reserve chiefs
supported bets the U.S. central bank might lower key lending
rates by the end of the year even though Fed Chairman Jerome
Powell said two days earlier he did not see the need to raise or
cut rates right now.
    Chicago Fed President Charles Evans said at an event in
Stockholm that lower U.S. rates may be needed if the economy
softens.
    St. Louis Fed President James Bullard told CNBC television 
the Fed's policy rate is "a little tight" and that current
readings of inflation are uncomfortably low.
    Interest rates futures implied traders saw about a 52%
chance the Fed would lower rates at its Dec. 10-11 policy
meeting, compared with 50% late on Thursday, according to the
CME Group's FedWatch program.
    Among other major currencies, the Australian and New Zealand
dollars have fallen on speculation both countries' central banks
will lower interest rates next week.
    The Reserve Bank of Australia meets on May 7 and the Reserve
Bank of New Zealand a day after. Each may cut rates after low
inflation reports, analysts said.
    The Aussie was up 0.29% at $0.702, while the Kiwi
 was 0.45% higher at $0.6647.
========================================================
    Currency bid prices at 11:03AM (1503 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1188        $1.1176     +0.11%         -2.45%      +1.1194     +1.1136
 Dollar/Yen       JPY=        111.2400       111.5000    -0.23%         +0.89%      +111.6800   +111.1900
 Euro/Yen         EURJPY=     124.48         124.58      -0.08%         -1.38%      +124.6500   +124.2900
 Dollar/Swiss     CHF=        1.0175         1.0191      -0.16%         +3.68%      +1.0214     +1.0170
 Sterling/Dollar  GBP=        1.3119         1.3034      +0.65%         +2.84%      +1.3122     +1.2990
 Dollar/Canadian  CAD=        1.3413         1.3472      -0.44%         -1.63%      +1.3489     +1.3406
 Australian/Doll  AUD=        0.7019         0.7000      +0.27%         -0.43%      +0.7020     +0.6986
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1386         1.1388      -0.02%         +1.17%      +1.1398     +1.1373
 Euro/Sterling    EURGBP=     0.8527         0.8574      -0.55%         -5.09%      +0.8587     +0.8525
 NZ               NZD=        0.6645         0.6616      +0.44%         -1.07%      +0.6652     +0.6607
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.7070         8.7544      -0.54%         +0.79%      +8.7876     +8.7089
 Euro/Norway      EURNOK=     9.7447         9.7805      -0.37%         -1.65%      +9.8134     +9.7434
 Dollar/Sweden    SEK=        9.5448         9.5769      -0.16%         +6.48%      +9.6130     +9.5447
 Euro/Sweden      EURSEK=     10.6818        10.6985     -0.16%         +4.07%      +10.7130    +10.6757
 
    
    
    

 (Additional reporting by Tom Finn in London, Wayne Cole in
Sydney, editing by Larry King, Kirsten Donovan and Jonathan
Oatis)
  
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