The dollar index (DXY00) on Friday fell by -0.26%. The dollar Friday gave up an early advance and turned lower as a rebound in stock prices from early losses curbed liquidity demand for the dollar. Also, hawkish comments from ECB Executive Board member Schnabel boosted the euro at the dollar’s expense. The dollar Friday initially moved higher after T-note yields jumped on the stronger-than-expected U.S. Sep nonfarm payroll report.
Friday’s U.S. economic news was mixed for the dollar. On the negative side, Aug consumer credit unexpectedly fell -$15.62 billion, the biggest decline in 3-1/4 years and weaker than expectations of a +$11.700 billion increase. Conversely, Sep nonfarm payrolls surged +336,000, well above expectations of +170,000 and the largest increase in eight months. Also, Aug nonfarm payrolls were revised upward by 40,000 to +227,000 from the initially reported +187,000.
