US Dollar Stalls As Economy Creates 4.8 Million Jobs in June, Factory Orders Surge

The  US dollar is stalling against many of  its G10 currency rivals on  Thursday after a  strong and  better-than-expected June jobs report. The  stellar labor reading sparked a  rally in  the  stock market, raising the  risk tolerance of  traders in  equities. After the  last couple of  weeks of  investors being spooked by  a  resurgence in  coronavirus cases, the  millions of  new jobs suspended these fears for  now.

According to  the  Bureau of  Labor Statistics (BLS), the  US economy created 4.8 million new jobs in  June, beating the  market forecast of  three million. The  unemployment rate fell to  11.1% last month, coming in  better than the  median estimate of  12.3%.
This is a  continuation of  the  strong May jobs report that saw 2.699 million new jobs and  a  jobless rate of  13.3%.
The biggest employment gains were concentrated in leisure and hospital (2.088 million), retail (739,800), education and health services (568,000), professional and business services (306,000), and manufacturing (356,000). Government payrolls picked up just 33,000.
The  US government also reported that the  labor force participation rate rose to  61.5%, average weekly hours dipped to  34.5, and  average hourly earnings slipped 1.2%.
In  a  separate labor report, the  number of  Americans filing for  first-time unemployment benefits clocked in  at  1.427 million in  the  week ending June 27, worse than the  1.355 million projection.
Continuing jobless claims totaled 19.29 million, while the  four-week average, which eliminates the  week-to-week volatility, topped 1.503 million.
In  other economic data, the  balance of  trade worsened to  -$54.6 billion in  May as  exports fell to  $144.5 billion and  imports dipped to  $199.1 billion.
In  May, new orders for  US manufactured goods surged by  8%, falling short of  market expectations of  8.9%. This is up from the  13.5% crash in  April.
The  two-year bond yield climbed 2.5 basis points to  1.458%, the  benchmark 10-year Treasury yield rose 1.9 basis points to  0.701%, and  the  30-year bond yield added 2.5 basis points to  1.463%.
Financial markets rallied on  the  good news as  the  leading stock indexes surged more than 1%. Gold continued to  retreat after testing its best level in  nine years.
The  US Dollar Index, which measures the  greenback against a  basket of  currencies, fell 0.17% to  97.03, from an  opening of  97.15. The  index is on  track for  a  weekly gain loss of  0.4%, paring its year-to-date gain to  below 0.7%.
The  USD/CAD currency pair tumbled 0.12% to  1.3573, from an  opening of  1.3587, at  14:03 GMT on  Thursday. The  EUR/USD rose 0.17% to  1.1272, from an  opening of  1.1251.
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