The U.S. dollar stayed largely subdued on Friday, reacting to a mixed batch of economic data and mild optimism over the U.S. and China reaching an agreement to sign an interim trade deal sometime this month.

The Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.

The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.

Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.

Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.

The ISM said its purchasing managers index crept up 48.3 in October from 47.8 in September, although a reading below 50 still indicates a contraction in manufacturing activity. Economists had expected the index to rise to 48.9.

In the previous month, the index fell to its lowest level since hitting 46.3 in June of 2009, the last month of the Great Recession.

The dollar index, which was up at 97.45 before the release of the latest batch of U.S. economic data, retreated soon after the release and spent the rest of the session in negative territory.

It was last seen at 97.22, down 0.13% from previous close of 97.16.

Against the Euro, the dollar was down marginally at 1.1162.

The Pound Sterling was down marginally at $1.2938, after swinging between $1.2901 and $1.2972.

UK manufacturing activity decreased at the slowest pace in six months in October, remaining constrained by ongoing political and economic uncertainties as output, new orders and employment continued to fall, survey data from IHS Markit showed on Friday.

The Japanese Yen was down at 108.20 a dollar, compared to previous close of 108.02 a dollar.

The dollar was down against the loonie and Swiss franc with the respective pairs quoting at 1.3142 and 0.9856, respectively, by late afternoon.

Data from Markit said the IHS Markit Canada Manufacturing Purchasing Managers’ index, a measure of manufacturing business conditions, rose to a seasonally adjusted 51.2 in October, its highest level since February. The index stood at 51.0 in September.

Swiss consumer prices declined for the first time since late 2016 in October, the Federal Statistical Office reported Friday.

Another report showed that retail sales in Switzerland recovered in September on non-food product turnover.

Against the Aussie, the dollar was down at 0.6913.

The material has been provided by InstaForex Company – www.instaforex.com