(BFM Stock Exchange) – The dollar dives against the euro after a monthly report on American employment less good than expected.

Main meeting of the day in terms of economic indicators, the last monthly employment report turned out to (well) less good than expected.

The American economy created fewer positions than anticipated in July. According to the monthly report of the Labor Department, 73,000 jobs were created last month, nearly 30,000 less positions than the consensus awaited (104,000 job creations).

A “mediocre” report

The unemployment rate increased online with expectations at 4.2%, after 4.1% in June. Average salary growth increased to 0.3% in July, as expected by consensus and after 0.2% in May.

“It is impossible to deny that the employment report in July is poor, with an increase of 73,000 non -agricultural jobs against 104,000 according to consensus, but the most striking is the huge revision down 258,000 jobs for the last two months,” notes James Knightley, chief economist at ING.

“The mediocre figure of July is one thing, but the important revisions suggest that the job market has lost its momentum earlier than expected and that the pressure exerted by the president (Donald Trump, editor’s note) on the Fed so that it takes measures will only intensify after that,” he continues.

“The declarations of the two governors of the Fed who voted in favor of a drop in rates this week, Chris Waller and Michelle Bowman, indicate that they believe that the Fed shows an excessive prudence ‘and that its policy is likely to be delayed’. This feeling should be widespread within the Fed after the publication of today’s figures, especially since customs rights will weigh on the purchasing power of households and Business benefits, thus creating a significant brake on growth, “adds James Knightley.

The CAC 40 digs its losses

The dollar collapses against the euro after this report. The euro jumped 1.12% to $ 1.1,550 while the single currency was slightly dropped against the greenback before this publication.

On the bond market side, the yields fell. The rate of American 10 years contracts 4.26%, then at 4.40% before statistics when the 30th, dropped to 4.84% against 4.94% around 2:00 p.m.

As a sharp drop of more than 2% at midday, the Parisian index widens its withdrawal, and yields almost 3%, around 3:45 p.m. also undermined by a series of disappointing results, and uncertainty about American customs duties.

Wall Street is also poorly oriented, the S&P 500 falling by 1.5% and the composite Nasdaq of more than 2%.