Forex News – Euro falls after US job cuts data

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Euro tumbled against the dollar after data on US job cuts showed a greater number of layoffs by companies in the United States in January, reaching the highest level in four months.

According to a report from consultants Challenger, Gray & Christmas, Inc. , the change in the number of job cuts announced by employers rose 28 percent from December to January as employers announced 53,486 planned job cuts last month. This was on a monthly basis.

Meanwhile on an annual basis, January’s job cuts were also up from the same time a year ago, gaining 38.9 percent from the 38,519 layoffs announced in January 2011.

Leading the job cuts were financial firms which trimmed 7,611 jobs, compared to the government sector which saw only a relatively small amount of cuts at 3,021.  Retail companies cut 12,426 jobs, the largest amount for the sector in two years. The reason for the layoffs were due to store closings and other cost-cutting measures.