US financial markets remained unchanged on the news, after equity markets struggled for traction earlier in the day as investors parsed details of the sweeping tax reform bill.
The greenback had slipped on Thursday after Republicans in the U.S. House of Representatives released proposals to overhaul the tax code.
Republicans called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on companies’ foreign profits and on individuals and families. Congressional passage of the legislation, however, was far from certain.
While the contents of the tax reforms seem positive for the dollar, there is still uncertainty over how quickly it can be implemented.
At the conclusion of its policy meeting on Wednesday, the Fed left interest rates unchanged, as expected, but further added to expectations for a December rate hike by highlighting "solid" economic growth and a strengthening labor market.
The dollar held steady versus a basket of currencies on Friday, as focus shifted to U.S. jobs data.
Average Hourly m/m
0.2% vs 0.5% * vs **
Non-Farm Employment Change
* expection vs ** previous
Nonfarm Payrolls (Oct)
Prior was -33K (revised to +18K)
Estimates ranged from +120K to +400K
Two-month net revision +90K
Private payrolls 252K vs +302K expected
Unemployment rate 4.1% vs 4.2% expected (lowest since 2001)
Participation rate 62.7% vs 63.1% prior
Underemployment rate 7.9% vs 8.3% prior
Average hourly earnings m/m 0.0% vs +0.2% expected
Average hourly earnings y/y 2.4% vs +2.7% expected
Very weak wages. It looks like skews from the hurricanes are still a big part of the story. That drop in the participation rate is concerning.
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