Friday, 3 Dec 2010

Dollar Drops on Dismal Jobs Data

The dollar dropped sharply today after the release of worse than expected U.S employment data. The U.S. economy added 39,000 jobs in November, according to the report, compared to the 147,000 economists had expected. The unemployment rate surged to 9.8% from 9.6%. The disappointing non-farm payrolls report supports the continuation of the Federal Reserve's massive asset-purchase program, which weighs on the dollar.

The euro is at $1.3370 from $1.3225 late Thursday. The dollar is at Y82.73 from Y83.86, while the euro was at Y110.50 from Y110.95. The U.K. pound was at $1.5741 from $1.5597

Light, sweet crude for January delivery recently traded $1.07, or 1.2%, higher at $89.07 a barrel on the New York Mercantile Exchange. Spot crude is currently at $89.22 a barrel.

The most actively traded contract, for February delivery, recently was up 1.3%, or $18.20, at $1,407.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Gold surged as economic recovery concerns intensified after the release of the abysmal U.S. employment data.