The US dollar traded weaker against a basket of currencies after a weaker than expected US jobs report. The worlds largest economy lost 533,000 jobs in November, the worst performance since 1974. To make things worse, October job losses were revised significantly downward. Unemployment is now at 6.7%, the highest level since 1993. With the ongoing release of grim economic data market participants are now pricing in a 50 basis point cut December 16th. The euro weakened against the dollar after a forward-looking indicator showed inflation would fall sharply in the coming months. After yesterday’s largest ever ECB rate cut of 75 basis points, investors are still looking for more cut by the ECB to help end to the global recession. The British pound continues to trade near 13 year lows after yesterday’s BOE rate cut of 1%. No other economic reports were released today. The Japanese yen rose to a 6 week high against the dollar after US lost the most jobs in 34 years. The Canadian dollar continued to weaken after a government report showed the country had the most job losses since 1982 making the unemployment rate rise to 6.3%. Oil is trading below $43/barrel and gold is near $750/oz. Both the Australian dollar and the New Zealand dollar continued to weaken against the dollar after both countries cut rates earlier this week. The Royal Bank of Australia cut rates 1% to 4.25% and New Zealand central bank slashed rates 1.50% to 5%. The Mexican peso lost 1.5% against the dollar after a bleak US jobs report was released.

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