6 June 2005, 12:32  Dollar slipps against the euro and the yen on weak U.S. jobs data

The dollar slipped against the euro and the yen on Monday on weak U.S. jobs data, although the euro zone currency remained vulnerable due to worries about the political and economic outlook of the European Union. Although sorely underwhelming U.S. jobs figures had prompted dollar selling against the yen late last week, sentiment toward the euro has been so poor that the data could not help the single currency climb out of its rut. Analysts said the life breathed into the euro against the dollar on Monday was due to yen gains against the U.S. currency and fairly limited euro/yen losses. "Dollar selling is driving the market today," said Osamu Takashima, chief forex analyst at Bank of Tokyo-Mitsubishi. "The yen is being bought on the U.S. jobs data, but the fact that this buying isn't pushing the euro/yen that much lower is acting in the euro's favor against the dollar." Jobs growth in May was the worst in 21 months, data showed on Friday, coming after figures last week showed manufacturing activity was the slowest in almost two years. With worries mounting about a U.S. economic slowdown while the euro remains fragile, the yen was poised to benefit, said Taisuke Tanaka, currency strategist at Morgan Stanley in Tokyo. "The downside risk on the euro and loss of dollar momentum can push up the yen against both currencies," he said. Since the start of the year the euro has tumbled almost 10 percent against the dollar and more than 5 percent versus the yen.

© 1999-2024 Forex EuroClub
All rights reserved