London (awp/afp) – The dollar is mixed on Friday after a sharp decline in job creation in the United States, more critical than expected, while the pound makes up for its losses the day after a mini-panic caused on the markets by the new British budget.
Around 2:40 p.m., the American currency gained 0.08% against the euro, to $1.0874, and lost 0.50% against the pound, to $1.2964.
Under the cumulative effect of strikes and two hurricanes, only 12,000 jobs were created in October in the United States, according to a report released Friday, when analysts predicted 110,000, according to the Market Watch consensus. .
In comparison, in September, the US Labor Department recorded 223,000 new jobs, according to revised figures.
“This lower-than-expected job creation could encourage the Federal Reserve (Fed) to ratify the widely expected 0.25 percentage point” cut in its rates at the end of its next meeting on November 6 and 7, estimates Mahmoud Alkudsi, analyst at ADSS.
The unemployment rate in October in the United States, however, remained stable compared to the previous month, at 4.1%.
For its part, the pound recovered from its brutal fall the day before, also gaining 0.58% against the euro, to 83.88 pence.
On Thursday, the British currency suffered “from the fact that investors are turning away from British assets”, Ricardo Evangelista of ActivTrades told AFP, scalded by heavy spending – including 100 billion pounds of loans – and by the tax increases announced Wednesday during the budget presentation.
A report from the public budget forecasting body, the OBR, indicates in particular “that the new budgetary measures could lead to prolonged stagnation in British growth”, notes the analyst.
But, “once calm returns to the markets”, they should gradually integrate a slower pace of rate cuts from the Bank of England (BoE), estimates Kit Juckes, of Société Générale, because this new budget is also likely to reinforce inflation.
The BoE will make its monetary policy decision next Thursday, as will the Fed.
Nervous financial markets have also pushed up the cost of British borrowing. On Friday, the yield on 10-year British government bonds fell slowly, after reaching the highest level since November 2023 the day before, at 4.53%.
Cours de vendredi Cours de jeudi 13H40 GMT 21H00 GMT EUR/USD 1,0874 1,0884 EUR/JPY 165,50 165,47 EUR/CHF 0,9434 0,9404 EUR/GBP 0,8388 0,8437 USD/JPY 152,20 152,03 USD/CHF 0,8675 0,8640 GBP/USD 1,2964 1,2899
afp/jh
