July 5, 2018 / 2:41 PM / 3 months ago

FOREX-Dollar slides to three-week low after U.S. jobs data, euro rises

    * Euro rises on strong German industrial orders
    * U.S. private sector jobs rise less than expected in June
    * U.S. jobless claims up; U.S. services index better than
expected
    * Investors look to Fed minutes

 (Adds comments, FX table, updates prices; changes byline,
dateline; previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, July 5 (Reuters) - The dollar fell to three-week
lows on Thursday, as the euro gained on strong German industrial
orders, while data showing jobs rose less than expected in June
plus nagging concerns about global trade also reined in the
greenback's recent rally.
    Mazen Issa, senior FX strategist, at TD Securities in New
York said U.S. economic prospects remain upbeat compared with
the rest of the world, but that advantage could be running its
course.
    "Early flow data has corroborated a return to U.S. dollar
assets, but this could be challenging in the coming months if
growth abroad stabilizes and twin deficits becomes topical
again," Issa said. "For now, euro/dollar looks poised to test
key resistance." 
     The euro climbed after German industrial orders had a
higher-than-expected jump in May following four consecutive
monthly drops, as demand from domestic customers and the rest of
the euro zone picked up.
    At the same time, there has been a softening in U.S. trade
rhetoric towards European Union carmakers, also helping the
euro.
    The U.S. ambassador to Germany told German car bosses that
President Donald Trump would suspend threats to impose tariffs
on cars imported from the EU if the bloc lifted duties on U.S.
cars, a German newspaper reported on Wednesday.
    German carmakers were set to post their biggest
daily gain since late March with Daimler, BMW
, Volkswagen and Renault leading
the broader index higher.
    In the United States, there was further pressure on the
dollar after data showed private payrolls increased last month,
but were lower than forecast, while initial jobless claims rose
unexpectedly last week.
    The dollar trimmed losses after a higher-than-expected U.S.
services index.
    In mid-morning trading, the dollar index dropped to a
three-week low and was last down 0.3 percent at 94.361. 
    While the dollar has been supported by the perception of the
relative strength of U.S. growth and the attraction of its
higher Treasury yields, some market players say recent falls in
those yields may be undermining the currency.
    The euro rallied to a three-weak peak and last changed hands
at $1.1697, up 0.4 percent.
    However, a deadline for Washington to impose tariffs on
Chinese imports, set for July 6, has kept the market rangebound.
    Investors are also waiting for the release of the Federal
Reserve's minutes of its June meeting later on Thursday as they
look for further confirmation of two more rate increases this
year. 
    Monthly payrolls data follow on Friday.
    
    ========================================================
    Currency bid prices at 10:15AM (1415 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1695        $1.1654     +0.35%         -2.51%      +1.1720     +1.1650
 Dollar/Yen       JPY=        110.6200       110.4500    +0.15%         -1.82%      +110.7000   +110.3000
 Euro/Yen         EURJPY=     129.38         128.78      +0.47%         -4.29%      +129.6300   +128.5800
 Dollar/Swiss     CHF=        0.9924         0.9924      +0.00%         +1.86%      +0.9940     +0.9911
 Sterling/Dollar  GBP=        1.3218         1.3230      -0.09%         -2.17%      +1.3274     +1.3206
 Dollar/Canadian  CAD=        1.3123         1.3139      -0.12%         +4.34%      +1.3159     +1.3115
 Australian/Doll  AUD=        0.7391         0.7380      +0.15%         -5.26%      +0.7408     +0.7362
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1611         1.1569      +0.36%         -0.67%      +1.1619     +1.1569
 Euro/Sterling    EURGBP=     0.8844         0.8811      +0.37%         -0.44%      +0.8857     +0.8805
 NZ               NZD=        0.6782         0.6759      +0.34%         -4.29%      +0.6797     +0.6752
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.0518         8.1078      -0.69%         -1.89%      +8.1235     +8.0373
 Euro/Norway      EURNOK=     9.4203         9.4557      -0.37%         -4.35%      +9.4709     +9.4063
 Dollar/Sweden    SEK=        8.7495         8.7876      -0.08%         +6.68%      +8.7988     +8.7307
 Euro/Sweden      EURSEK=     10.2350        10.2428     -0.08%         +4.02%      +10.2525    +10.2130
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Saikat Chatterjee in London)
  
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