Dollar set for second weekly gain

The dollar gained on Friday after data showed slower than expected US jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month.

The unemployment rate fell to 4.4 percent last month from a revised 4.5 percent in November, the US Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000.

The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers are inclined to do at least in the near term.

Financial markets had been bracing for a possible Supreme Court decision that could strike down President Donald Trump’ssweeping tariffs.

But the court will now not issue that ruling on Friday, though a decision could still come next week.

The US economy added 50,000 jobs in December, according to Labor Department data released on Friday. That was lower than an estimated increase of 60,000 jobs forecast by economists in a Reuters poll.

The dollar was up 0.2 percent to 0.801 against the Swiss franc , headed for the second straight week of gains.

The dollar index rose 0.25 percent to 99.13 and was set for the second consecutive week of gains.

“In real life, the standard error margin for non-farm payrolls is 20,000 and so I don’t think the market is going to pay much attention to this,” said Steve Englander, head of global G10 FX Research at Standard Chartered.

Fed funds futures are pricing an implied probability of 95 percent that the central bank holds interest rates at its next two-day meet on January 27 and 28, up from 68 percent a month ago, the CME Group’s FedWatch tool shows.