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Softer-than-expected Nonfarm Payrolls Data Pulls Down U.S. Dollar

The U.S. dollar fell against its major counterparts in the New York session on Friday, as a weaker-than-expected nonfarm payrolls data for October bolstered hopes of a halt to monetary tightening by the Federal Reserve.

Data from the Labor Department showed that U.S. employment rose less than expected in the month of October.

Non-farm payroll employment climbed by 150,000 jobs in October after jumping by a downwardly revised 297,000 jobs in September.

Economists had expected employment to increase by 180,000 jobs compared to the surge of 336,000 jobs originally reported for the previous month.

The unemployment rate crept up to 3.9 percent in October from 3.8 percent in September. The unemployment rate was expected to remain unchanged.

The data added to hopes that the Fed is done raising interest rates for the year.

The greenback fell to 1-1/2-month lows of 1.0724 against the euro and 0.6508 against the aussie, from yesterday’s close of 1.0621 and 0.6433, respectively. The greenback is seen finding support around 1.09 against the euro and 0.66 against the aussie.

The greenback dropped to a 3-day low of 149.25 against the yen and a 1-week low of 0.8985 against the franc, from Thursday’s close of 150.39 and 0.9058, respectively. The greenback is likely to face support around 142.00 against the yen and 0.88 against the franc.

The greenback weakened to a 10-day low of 1.3671 against the loonie and a fresh 3-week low of 0.5988 against the kiwi, from yesterday’s closing values of 1.3737 and 0.5898, respectively. The greenback is poised to challenge support around 1.32 against the loonie and 0.66 against the kiwi.

The greenback touched 1.2340 against the pound, its lowest level since September 21. The pair had finished Thursday’s deals at 1.2202. Should the greenback falls further, it is likely to test support around the 1.26 region.

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