Forex Fundamentals - US dollar drops on weak employment data.

January 4, 2008 - Forex Economic News

Weaker than expected employment data sent the U.S. dollar lower against major currencies today. The U.S. Department of Labor announced that 18,000 nonfarm payroll jobs were created in December and that the unemployment rate increased from 4.7 percent to 5.0 percent. Unemployment increased by 474,000 workers in December bringing the total to 7.7 million unemployed. One year ago the unemployment rate was 4.4 percent with 6.8 million unemployed workers. The employment numbers have again raised speculation that the U.S. Fed will have to cut interest rates later this month to help stave off a recession.

ISM Business Activity: Growth but slowing.

U.S. non-manufacturing business activity decreased by 0.2 percent in December compared to November in data released today by the Institute for Supply Management. December registered an index score of 53.9 percent down from 54.1 percent in November. An index score above 50 indicates an expansion and December marks the 57th straight month that posted a score above 50 in non-manufacturing business activity. Anthony Nieves, chair of the Institute for Supply Management Non-Manufacturing Business Survey Committee cited in the report that "The overall indication in December is continued economic growth in the non-manufacturing sector, but at a slightly slower pace than in November.

Tags: Forex Trade, Institute for Supply Management, U.S. Employment---- Blog index