FOREX-Dollar weakens as strong U.S. jobs data dims haven appeal

* U.S. economy creates 4.8 mln jobs * Safe-haven dollar also hurt by vaccine news * Dollar on pace to post losses for 2nd straight week * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh (Adds analyst comment, more details on jobs report, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, July 2 (Reuters) – The U.S. dollar fell on Thursday after data showing the world’s largest economy defying expectations for a second month in a row, creating jobs in June at a far faster pace than market forecasts. The greenback was on track to post losses for a second straight week against a basket of major currencies. Data showed that U.S. nonfarm payrolls increased by 4.8 million jobs in June, the most since the government started keeping records in 1939. Payrolls rebounded 2.699 million in May. Economists polled by Reuters had forecast payrolls increasing by 3 million jobs in June. The unemployment rate, meanwhile, fell to 11.1% last month from 13.3% in May. The report further diminished the dollar’s appeal as a safe haven. “Everything still seems to be heading in the right direction. Right now, expectations are pretty high that the economy is rebounding back,” said Edward Moya, senior market strategist at OANDA in New York. In midmorning trade, the dollar index slid 0.1% to 97.064, as the euro rose 0.1% versus the greenback to $1.1262. Traders are focused on whether the euro can close above $1.13 and OANDA’s Moya said it could happen. “This is going to support the belief that a massive weakening in the U.S. dollar is upon us because there’s still optimism that risky assets are going to shine because the Federal Reserve is going to remain very accommodative,” Moya said. Despite the dollar’s recent spell of weakness, the greenback is still up 2.5% from the 2020 low of 94.6 in the dollar index hit in early March. A Reuters poll predicts more weakness for the greenback over the next 12 months due to weak global demand. The dollar, however, gained 0.1% against the yen to 107.59 yen. The U.S. currency had been buffeted earlier in the session by news that a COVID-19 vaccine developed by German biotech firm BioNTech and U.S. pharmaceutical giant Pfizer had shown potential in early-stage human trials. ======================================================== Currency bid prices at 9:41AM (1341 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1263 $1.1250 +0.12% +0.47% +1.1302 +1.1248 Dollar/Yen JPY= 107.5800 107.4600 +0.11% -1.18% +107.7200 +107.3400 Euro/Yen EURJPY= 121.17 120.90 +0.22% -0.64% +121.4300 +120.7700 Dollar/Swiss CHF= 0.9446 0.9457 -0.12% -2.40% +0.9464 +0.9427 Sterling/Dollar GBP= 1.2491 1.2470 +0.17% -5.79% +1.2529 +1.2462 Dollar/Canadian CAD= 1.3578 1.3585 -0.05% +4.56% +1.3611 +1.3564 Australian/Doll AUD= 0.6932 0.6914 +0.26% -1.27% +0.6943 +0.6905 ar Euro/Swiss EURCHF= 1.0639 1.0640 -0.01% -1.96% +1.0661 +1.0639 Euro/Sterling EURGBP= 0.9015 0.9018 -0.03% +6.64% +0.9032 +0.9006 NZ NZD= 0.6521 0.6475 +0.71% -3.19% +0.6536 +0.6475 Dollar/Dollar Dollar/Norway NOK= 9.4753 9.5133 -0.40% +7.94% +9.5302 +9.4396 Euro/Norway EURNOK= 10.6716 10.7025 -0.29% +8.47% +10.7260 +10.6480 Dollar/Sweden SEK= 9.2943 9.3064 -0.03% -0.56% +9.3157 +9.2378 Euro/Sweden EURSEK= 10.4689 10.4716 -0.03% +0.00% +10.4811 +10.4313 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea Ricci and Jonathan Oatis)

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