- The index briefly dropped to lows near 92.40 post-NFP.
- US 10-year yields tumble to lows in the 2.91% region.
- US Non-farm Payrolls came in at 164K in April, below forecasts.
After an ephemeral test of lows near 92.40 in the wake of Non-farm Payrolls, the US Dollar Index (DXY) retakes the 92.50 region.
US Dollar within range on NFP
The index keeps the familiar range today despite US Non-farm Payrolls figures disappointed expectations today. In fact, the US economy added 164K jobs during last month, missing expectations at 189K and a higher than March’s 135K (revised from 103K).
Furthermore, the unemployment rate came in on the strong side, dropping to 3.9% vs. 4.0% forecasted and down from 4.1%. However, the key Average Hourly Earnings expanded 0.1% inter-month and 2.6% on an annualized basis, both readings missing initial estimates.
In the meantime, the underlying constructive tone around the buck remains well and sound despite US yields keep retracing the recent up move to cycle highs beyond the 3.0% level. DXY is on the way to close the third consecutive week with gains, including fresh YTD peaks near 92.80.
US Dollar relevant levels
As of writing the index is gaining 0.12% at 92.54 and a breakout of 92.83 (2018 high May 2) would open the door to 93.68 (78.6% Fibo of 95.15-88.25) and then 94.22 (high Dec.12 2017). On the other hand, initial contention emerges at 91.96 (200-day sma) seconded by 91.79 (10-day sma) and finally 91.70 (50% Fibo of 95.15-88.25).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.