Dollar Falls after Private-Sector Hiring Disappoints

The U.S. Dollar took a hit this morning following therelease of the worse than expected June Non-Farm Payrolls Report. Going intothe report, investors were looking for total jobless claims to fall 130,000.

The U.S. Dollar took a hit this morning following therelease of the worse than expected June Non-Farm Payrolls Report. Going intothe report, investors were looking for total jobless claims to fall 130,000.The actual number was -125,000.

More important to investors however was the number ofprivate-sector jobs created. Pre-report estimates were for an increase of115,000 jobs in the private-sector. The government was expected to say itreleased about 250.000 temporary Census workers last month. The actual hiringby the private sector was 83,000 jobs. This number was disappointing totraders.

Today’s bearish report comes on the heels of a rise inweekly U.S. Initial Jobless Claims on Thursday along with a fall in home salesand a weak reading of a key manufacturing index.

Today’s negative reaction to the Dollar was in contrast tothe recent pattern which showed a tendency toward flight to safety buying byinvestors following weaker U.S. economic news. Traders in the past had treatedbad U.S.economic news as a bump in the road to recovery but the recent string of badnews has led investors to believe that a weaker trend is developing in theeconomy.