Forex Today: Dollar on course to fall further
|What you need to know on Monday, June 7:
The greenback fell on Friday following a dismal US employment report, giving up most of Thursday’s gains. The US May Nonfarm Payrolls report showed that the country added 559,000 jobs in May, missing expectations. The unemployment rate fell to 5.8% from 6.1%, better than the expected 5.9%. However, the Labor Force Participation Rate contracted from 61.7% to 61.6%, offsetting any positive effect from the shrinking unemployment rate.
Nevertheless, the greenback closed the week with modest gains against most major rivals. News that the US Federal Reserve will start unwinding one pandemic-facility program boosted the dollar amid further tightening coming in the near-term.
The EUR/USD pair trades around 1.2160, while GBP/USD stands at 1.4155. The dollar may fall further at the weekly opening following the echoes of the Friday market’s behaviour. US Treasury yields are under pressure amid decreased hopes for tightening in the US, while Wall Street managed to close the day in the green.
Commodity-linked currencies advanced against the greenback but held away from weekly highs. Canada also reported its employment figures, which showed that the country lost 68K job positions, while the unemployment rate ticked higher as expected to 8.2%. AUD/USD trades around 0.7740, struggling with a daily descendant trend line coming from May’s high, while USD/CAD settled at 1.2080.
The USD/JPY pair hit 110.32 before retreating to the 109.50 price zone.
Gold benefited from the broad dollar’s weakness and settled at $1,890 a troy ounce. Crude oil prices reached fresh multi-month highs, with WTI ending the week at $69.40 a barrel.
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