Disappointing data on the development of US employment in August saw the dollar fall drastically against other major currencies.

This afternoon, the US Department of Labour released that unemployment remained at the previous level and new job creation had fallen from 255,000 in July to 151,000 in August.

In the aftermath, the USD fell nearly 0.4% against the EUR, to a week low at 0.89030. After the initial fall the USD/EUR recovered to stand at 0.89227 at 2.20pm.

The USD/JPY fell by nearly half a percent after the data release but since recovered all losses to stand at 103.58967 at 2.20pm.

No such recovery can be seen in the USD/GBP. The rate dropped 5.2% to a low of 0.74903 and has since only gained marginally to trade at 0.75009 at 2.30.

The USD already had to record major losses yesterday, after the ISM Manufacturing indices came in below expectations.

Katharina Fleiner 02/09/2016