Dollar Rebounds from Session Lows Amid Weaker Non-Farm Payrolls Data
The US dollar rebounded from session lows after traders bought into the dip following the release of weaker-than-expected non-farm payrolls data. The data showed that the economy added 29,000 jobs in September, falling short of analyst forecasts of 90,000 and revising the previous report from 162,000 to 133,000.
The unemployment rate increased from 4.1% in August to 4.2% in September, exceeding consensus estimates of 4.1%. This led to a decline in the probability of a rate hike at the October meeting to 21.6%, indicating that the Federal Reserve is less likely to raise interest rates.
The EUR/USD pair gained some ground following the release of the data but has since pulled back towards the 1.1250 level, where it faces resistance from the support area. The GBP/USD pair rebounded after yesterday's pullback and is now testing the 50-day moving average at 1.3247.