* U.S. job growth decelerates in July * Dollar rebounds after hitting 2-year low on Thursday (Updates to after U.S. jobs data, changes byline, dateline; previous LONDON) By Caroline Valetkevitch NEW YORK, Aug 7 (Reuters) - The U.S. dollar bounced on Friday after U.S. job growth for July surpassed low expectations but still showed a sharp decline from June, while investors kept an eye on ongoing stimulus talks in Washington. The U.S. Labor Department's report showed nonfarm payrolls increased by 1.76 million in July. While that was better than the 1.6 million economists surveyed by Reuters had forecast, it was still sharply lower than the record 4.8 million in June. The dollar index, which measures the dollar against a basket of currencies, rose in the wake of the report and hit its highest in three days. It was last up 0.6% at 93.419. "U.S. labor market report has painted a strong picture of the jobs recovery... However it is clear that the recovery remains fragile and depends significantly on the progress of the virus," said Michael Brown, senior analyst at payments firm Caxton, in London. "The dollar has, in reaction, found a bid in the afternoon session, with the market having shrugged its shoulders at the payrolls report, and instead focusing on the continued stalemate over a fifth stimulus bill, with today's solid jobs numbers potentially reducing the feeling of urgency to act among some lawmakers," he said. U.S. Republicans and Democrats have so far failed to reach an agreement on the cost of fiscal stimulus measures that many investors say is necessary to prevent the economy from losing more momentum. The U.S. dollar index's rebound on Friday may not signal an end to its recent weakness, some analysts said. "One month's survey isn't going to be enough to meaningfully arrest the fall in the dollar," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. The euro has retreated from recent highs, and was last down 0.8% at $1.1785, while the British pound also fell 0.8% to $1.3042. The risk-sensitive Australian dollar fell, hurt by concerns about worsening U.S.-Chinese relations and the Reserve Bank of Australia's downbeat assessment of the local economy. It was last down 0.8% at 0.7175. President Donald Trump on Thursday issued an executive order banning transactions with ByteDance, the Chinese company that owns the video-sharing app TikTok, and with Tencent Holdings Ltd , which owns the WeChat messaging app. The dollar is at its most oversold level in over 40 years, investment bank Morgan Stanley said on Friday, adding it had now shifted from its dollar-bearish stance and turned "tactically neutral" on the U.S. currency. ======================================================== Currency bid prices at 10:56AM (1456 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1785 $1.1875 -0.76% +5.13% +1.1883 +1.1756 Dollar/Yen JPY= 105.8900 105.5400 +0.33% -2.73% +106.0500 +105.4900 Euro/Yen EURJPY= 124.80 125.34 -0.43% +2.34% +125.3900 +124.4700 Dollar/Swiss CHF= 0.9130 0.9097 +0.36% -5.66% +0.9157 +0.9093 Sterling/Dollar GBP= 1.3042 1.3146 -0.79% -1.64% +1.3153 +1.3011 Dollar/Canadian CAD= 1.3380 1.3304 +0.57% +3.03% +1.3398 +1.3284 Australian/Doll AUD= 0.7175 0.7233 -0.80% +2.19% +0.7243 +0.7159 ar Euro/Swiss EURCHF= 1.0761 1.0803 -0.39% -0.84% +1.0812 +1.0760 Euro/Sterling EURGBP= 0.9036 0.9034 +0.02% +6.87% +0.9043 +0.9017 NZ NZD= 0.6616 0.6686 -1.05% -1.78% +0.6690 +0.6605 Dollar/Dollar Dollar/Norway NOK= 9.0527 8.9681 +0.94% +3.12% +9.0774 +8.9629 Euro/Norway EURNOK= 10.6700 10.6476 +0.21% +8.45% +10.6935 +10.6210 Dollar/Sweden SEK= 8.7429 8.6845 -0.14% -6.47% +8.7754 +8.6767 Euro/Sweden EURSEK= 10.3063 10.3209 -0.14% -1.56% +10.3297 +10.3010 (Reporting by Caroline Valetkevitch; additional reporting by Saqib Iqbal Ahmed and Olga Cotaga; editing by Emelia Sithole-Matarise, Jane Merriman and Dan Grebler)
Our Standards: The Thomson Reuters Trust Principles.