Dismal Jobs Hurt USD

The greenback was mixed on the Friday session, edging higher against the yen while losing ground versus the euro and sterling. 

The January labor report underscored the dire state of the US economy, with the data deteriorating by more than expected. The unemployment rate edged up to its highest level since 1992 to 7.6% in January, versus 7.2% previously. Consensus estimates were anticipating the unemployment rate to edge higher to 7.5%. Non-farm payrolls posted its largest monthly decline since 1974 with payrolls plunging by 598k, sharply worse than the 525k jobs loss expected and considerably higher from 524k from December.

The US equity market shrugged off the dismal jobs data with focus largely shifted toward the results of the latest stimulus plan and whether President Obama will successfully gain Congressional approval. By New York afternoon trading, the Dow Jones and Nasdaq continues to hold onto its gains, both up by over 2.7%.