Supremo US Dollar slips from three-month peak after June non-farm payrolls data

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Supremo US Dollar slips from three-month peak after June non-farm payrolls data

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies had faltered to a three-month low following release of the US Labour Department’s closely monitored US non-farm payrolls data for June what many analysts had reviewed as a mixed depiction of US labour market recovery having strong topline figures with a few weak core-components.

Aside from that, trading volume had been low ahead of a July Fourth ‘Independence Day’ holiday in the United States. Although, the US Dollar Index (DXY) fell as much as 0.36 per cent to 92.21, the American currency index had managed to wrap up the week in an affirmative territory.

Nonetheless, earlier in the day, US Labour Department data had revealed that US non-farm payrolls rose by 850,000 jobs last month, the strongest number of job gains in more than ten months, however, many analysts had referred that the overall US employment had still been 6.8 million below from a February 2020 peak, which had weighed heavily on investors’ morale.

In factuality, a flurry of investors were betting that a better-than-anticipated US non-farm payrolls data would prompt the US Fed to initiate a tapering off fiscal supports for the economy while yielding a hawkish tone on interest rates, however, as a 10-month peak US employment had botched to improve analysts’ view that the job report would be sufficient to stem a change of heart in US Central Bank policymakers, the US Dollar fell from the rooftop and gold had regained some of its safe-haven bid.

US Dollar falls from three-month high after NFP data

Citing statistics, in the day’s FX market closure, US Dollar shed 0.11 per cent against the bloc’s common currency euro to $1.1862, while the British pound added 0.47 per cent to $1.3826 against the greenback.

Aside from that, the safe-haven Japanese Yen gained 0.43 per cent against its American peer to 111.04 yen per Dollar, while another safe-haven Swiss Franc added 0.56 per cent to $0.9201. Meanwhile, citing that the Friday’s loss would unlikely to extend into the next week, a senior market economist at Capital Economics, Jonas Goltermann said, “The bigger picture is that the greenback has extended its post-FOMC rally against the other major currencies this week.

We expect it to make further headway, provided that the U.S. data continue to come in strong”.