American focus: weak US jobs prompted USD fall.[E]

USD has sharply slide down to the 4 week lows after weak Payrolls missed analytics forecasts.

As the Labor Department informed US economy in June made 121,000 new work places versus May 92,000 and awaited 175,000. Weak data bolstered speculations US economy slow down boosting bets Fed can make an August pause in it's tight policy as latest accompaneing statement testifies further Fed steps will depend on current economy outlook and mainly on inflation rate and economy growth.

The interest rates futures market odds Fed will lift it's borrowing costs in 25 b.p. at August 8 meeting makes now 59% declining from Thursday's bets in 67% and 85% in the end if June. The dollar on July 5 climbed a 2-week high versus the euro after a private report by Automated Data Processing Inc. and Macroeconomic Advisers LLC, estimated U.S. companies added 368,000 jobs, the most since 2001. This led to bullish sentiment upon USD making further disappointment more pivotal for dollar prospects.

The time for "bullish dollar bolstered on speculations higher rates came to the end.", said Samarjit Shankar, the CEO of global strategies from Mellon Financial Corp. "This time focus is displaced on ECB and BOJ

rates hike." Shankar foreshadows further dollar drop in 2 months prospect will make $1.31 on EUR and Y111 versus yen.Despite of disappointing weak data details that can possibly testify US economy slow down the report details show an ambiguous picture. Thus unemployment remained on five years low and made 4.6%, Average hourly earnings lifted on 3.9% versus 2005 data breaking five years highs and crimping inflation growth and possible tightening.

3M Co. message Q2 sales revenue will miss forecasts and weak sales data from Starbucks dwarfed GM upgrades and lured US stock market sales.