UNEMPLOYMENT

The dollar bounced against the majors at the start of the week, rallying to 1.3555 versus the euro from 1.3962 and edging up to 93.56 against the yen.

Demand for U.S. Treasury notes fell on Friday after an unexpectedly small decline in jobs reduced concern over a deep and prolonged recession, cutting demand for U.S. debt.

The Office for National Statistics (ONS) released new figures on Wednesday showing a rise in average earnings of 3.7 per cent in the three months to February 2008. The figure was slightly lower than the 3.9 per cent rise recorded for the three months to January.

Wall Street says recession, but economic data has yet to confirm the gloom

By Adrian AshBarely a generation after the worst recession in US history, backing labor over capital like this and thereby nabbing labor's far weightier vote meant JFK got to kick Richard Nixon around at the ballot box

The dollar found no reprieve in the Thursday session ahead of tomorrow’s closely watched February labor report – stumbling to fresh all-time lows against the euro just shy of the 1.54-mark and a 3-year low versus the yen at 102.56.

Consumer sentiment fell sharply in early February to levels associated with previous recessions, dragged down by concerns a bleak economic outlook would raise the unemployment rate, a survey showed on Friday. The Reuters/University of Michigan Surveys of Consumers index of consumer sentiment dropped to 69.6, the lowest reading since February 1992, and below analysts' median forecast for a preliminary reading of 76.3.

The outlook for the economy dipped on Friday as employers cut 17,000 jobs non-farm jobs in January, the first drop in 4 and a half years, which overturned analyst estimates that 69,000 new jobs would be added to the economy.

Treasuries rose on Thursday as investors looked to safer investments as reports released today showed signs of a weakening economy, boosting the chance that the Fed will lower borrowing costs.

The dollar fell against the yen on Thursday after government reports showed softness in employment and personal spending ahead of a jobs report tomorrow.

The dollar fell against the yen on Friday after a pair of U.S. government reports raised concern about the economy, indicating that hiring slowed in December and the unemployment rose to a two-year high.

U.S. stocks fell on Friday for a third time this week as the Nasdaq Composite Index hit its steepest drop since Feb. 27, 2007, following a 5 percent rise in unemployment raising investors concern of an economic recession.

Jobs growth skidded to a near-halt in December and the unemployment rate hit a two-year high, according to a government report on Friday that raised recession fears and chances of more interest-rate cuts. unemployment rate hit a two-year high, according to a government report on Friday that raised recession fears and chances of more interest-rate cuts.

The nation's unemployment rate soared up to 5 percent in December with a drop in job growth as the economy succumbed to housing and credit troubles, the Labor Department reported Friday, highlighting fears of recession.

Employers added 94,000 jobs in November, the Labor Department said on Friday in a report showing a slowdown in job creation in recent months that raises chances for a modest cut in interest rates next week. Analysts said continued gains in hiring showed the economy was not at immediate risk of crumbling onto recession but another report said consumers' moods grew darker in December.

New applications for U.S. jobless aid rose more than expected to 339,000 last week, and the more-reliable four-week moving average held steady at a 6-month high, government data released on Thursday showed.

New applications for jobless aid fell unexpectedly last week, dropping by 13,000, but a more reliable moving average of these claims rose to the highest level in six months, government data on Thursday showed.

Employers added about twice as many new employees last month than expected, while factory orders edged up, according to government reports on Friday that implied the economy was strong enough to avoid recession. The Labor Department said 166,000 non-farm jobs were added in October, enough to support consumer incomes and spending in the approaching holiday shopping season.

Japan's jobless rate rose unexpectedly last month, reinforcing expectations the Bank of Japan will delay its next rate rise, although household spending jumped more than forecast.

Investors looking to gauge economic sentiment drew upon several government reports on Thursday indicating the state of home sales, durable goods investments and jobless claims.

The number of U.S. workers filing new claims for jobless aid shot up last week with its biggest increase in nine months, raising expectations the Federal Reserve will further reduce interest rates to stimulate the economy.