Forex News – Non- farm payrolls lower than forecast

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The U.S dollar dropped sharply against the yen and the euro after disappointing U.S. jobs data. The March non-farm payrolls only rose by 120,000, which was much lower than forecast for 203,000 jobs to be created. This marked the smallest increase in job creation in five months. And lower than the previous month’s 227,000 increase. Also this was the first time since December  the NFP number breaks below the 200,000 level.

The unemployment rate, dropped to 8.2 percent% from 8.3 percent. However this was mainly because more American job seekers dropped out of the labor force.

Other statistics for the NFP report show that the average work week fell 0.1 hour to 34.5, while average hourly earnings rose 0.2 percent  to $23.39. Employment gains for January and February were little changed under Labor Department revisions. Employment in March was hurt in part by a 34,000 decline in retail jobs.

USDJPY tumbled to 81.29 from 82.54 within seconds in thin volatile trading as most markets were closed today for the Good Friday public holiday.

EURUSD rose to 1.3111 from 1.3050 after the news at 12:30 GMT.

The ICE dollar index dropped 0.3 to 79.856