FOREX-Dollar broadly weaker after U.S. jobs data disappoint

Reuters

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    * Nonfarm payrolls rose by 266,000 jobs vs forecast of
978,000
    * Dollar broadly lower 
    * MSCI EM currency index hits record high
    * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

 (Adds analyst comments, updates prices)
    By John McCrank
    NEW YORK, May 7 (Reuters) - The dollar fell to its lowest in
more than two months on Friday after U.S. jobs data for April
came in well below expectations, putting a damper on hopes that
a roaring economic recovery would spur higher rates and light a
fire under the greenback. 
    Nonfarm payrolls increased by only 266,000 jobs last month
after rising by 770,000 in March, the Labor Department said in
its closely watched employment report. Economists polled by
Reuters had forecast a rise of 978,000 jobs.  urn:newsml:reuters.com:*:nL1N2MT2XD
    "The number was so out of consensus, that I think the market
expectation of super-high rates and a squeeze on inflation is
going to go down by the wayside, and that obviously means more
liquidity from the Fed," said Boris Schlossberg, managing
director of FX strategy at BK Asset Management.
    It also means U.S. interest rates will stay at ultra-low
levels for quite a while and that is going to keep the pressure
on the dollar, Schlossberg added.
    The dollar was down 0.63% at 90.297 against a basket of
major currencies, having dropped as low as 90.209, its lowest
since Feb. 26, following the payrolls data.
    The euro was up 0.75% against the greenback at $1.21555
 EUR=EBS  and the British pound was up 0.73% at $1.3993
 GBP=D3 .
    "This is only one report, but this is changing many traders'
thinking on how this recovery is unfolding," said Edward Moya,
senior market analyst at FX broker OANDA, in New York.
    Elsewhere, China's exports unexpectedly accelerated in April
and import growth hit a decade high, helping to push the yuan
and Asian stocks higher.  urn:newsml:reuters.com:*:nL1N2MU04N
    China's yuan rose to a more than two-month high versus the
dollar and was set for its longest weekly winning streak since
September, helped by the strong trade data and softer dollar.
 urn:newsml:reuters.com:*:nL1N2MU06H
    The MSCI emerging market currency index  .MIEM00000CUS  hit
a record high of 1741.34 on Friday, lifted by gains in the
Chinese yuan and the weaker greenback.  urn:newsml:reuters.com:*:nL8N2MU4U7
    Emerging market currencies were also benefiting from the
"commodity supercycle", said Simon Harvey, FX analyst at Monex
Europe. 
    Commodity-linked currencies were higher, with the exception
of the Canadian dollar, which was near flat at 1.21505 to the
U.S. dollar, following a worse-than-expected Canada jobs report
for April due to a third wave of COVID-19 lockdowns. The loonie
had surged on Thursday to its strongest in more than three years
 CAD=D3 .  urn:newsml:reuters.com:*:nL1N2MU0YB  urn:newsml:reuters.com:*:nL1N2MT2WI
    The Australian dollar was up 0.72% versus the U.S. dollar,
at 0.7841  AUD=D3 . The Aussie has been supported by a strong
rally in the prices of Australia's top export earner, iron ore.
 urn:newsml:reuters.com:*:nL1N2MU08S
    "We expect the likes of AUD, CAD and NOK to remain well
supported with the backdrop for positive optimism over global
growth still quite favourable", MUFG head of research Derek
Halpenny wrote in a note, referring to the Australian and
Canadian dollars and Norwegian crown.
    In cryptocurrencies, ether rose 1.35% to $3,537.29, after
hitting an all-time high on Thursday  ETH=BTSP .  urn:newsml:reuters.com:*:nL1N2MT1S6
    Bitcoin was up 2.98%, at $58,128.86  BTC=BTSP .
    Meme-based virtual currency Dogecoin, which began as a
satirical critique of 2013's cryptocurrency frenzy, was up 4.49%
at $0.6107, ahead of an appearance by Tesla Inc  TSLA.O  Chief
Executive Officer, Elon Musk on Saturday Night Live this
weekend. 
    Musk's tweets about Dogecoin in the past have helped send
the digital currency, which is up more than 14,000% this year
alone, skyward.  urn:newsml:reuters.com:*:nL1N2M92RF
    "Post-SNL, some crypto traders could abandon short-term
Dogecoin bets once it becomes clear that it is not skyrocketing
to the moon or at the heavily eyed $1 level," said OANDA's Moya.

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World FX rates    https://tmsnrt.rs/2RBWI5E
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 (Reporting by John McCrank in New York; additional reporting by
Elizabeth Howcroft in London; Editing by Steve Orlofsky and
Emelia Sithole-Matarise)

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