The US dollar strengthened vs. most major currencies as the Labor Department reported that the unemployment rate hit a 26 year high, increasing investor risk aversion.  The government report showed that the unemployment rate rose to 10.2% last month, higher than forecast of 9.9%.  Employers had cut 190,000 jobs in October after a revised reduction of 219,000 jobs the previous month.  The dollar reversed losses from yesterday when the Federal Reserve announced that it would keep interest rates exceptionally low for an extended period.

The euro traded lower against the dollar following the US jobs report, reducing the demand for higher-yielding assets.
Sterling fell against the dollar as the US jobs report came in less than encouraging.  Investors continued the trend of buying safe-haven currencies with the announcement of negative economic news.
The Japanese yen strengthened against the dollar and euro after disappointing US jobs report.  As investors' sentiment for riskier assets waned, the yen tends to strengthen against the dollar. 

The Canadian dollar lost its steam after an unexpected drop in employment, raising the jobless rate higher than forecasted.  Canada's economy lost 43,200 jobs in October vs. expectation of 10,000 job increase, which boosted the unemployment rate up to 8.6%.  These disappointing figures added to expectation the Bank of Canada will keep interest rates low for a long time.  
The Australian and New Zealand dollars firmed against the US dollar as gold prices rallied.  The Aussie was also buoyed by bullish comments from the Reserve Bank of Australia as they painted a luminous outlook for the economy, suggesting interest rates and the currency were set to rise further over time.   
The Mexican peso weakened against the dollar after US unemployment rate soared to 10.2%, stirring concerns over the economic recovery in the US.  With over 80% of Mexico's exports going to the US, the peso becomes unfavorable when there is skepticism in the US. 




10-Year Treasury Note Yield: 3.5008%
Dow Jones Industrial Average:  9999.84 -6.12 This market summary is prepared by Union Bank's Global FX Department for the general information of its customers. It is based on the most accurate information currently available, but should not be considered investment advice or a guarantee of future exchange rates or trends.