Article by ForexTime
The US dollar held on to losses made on Friday after a dismal nonfarm payrolls report left investors to lower their expectations for interest rate hikes these coming months.
U.S. employers added just 38,000 jobs in May, the lowest number in more than five years. This was well below expectations for 160,000 and the previous months’ readings were revised lower. The jobless rate fell to 4.7 per cent last month from 5 per cent, driven by a drop in the labor force.
The weak jobs report also stirred worries that the US economic recovery has gone off track, and this led to a selloff in the dollar.
USDJPY traded around 107.05 yen in Asian trading on Monday. On Friday, the yen gained over 2 per cent versus the dollar for its biggest one-day advance since April 28.
Commodities priced in US dollars had a chance to gain. Gold, oil and iron ore prices bounced on the weakness in the US dollar.
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Brent crude, the international benchmark, was up 0.6 per cent at $49.96 a barrel, while West Texas Intermediate, the US marker, gained 0.8 per cent to $49.04.
Gold rose to as high as $1248.60 an ounce during Monday’s Asian trade.
Investors will now focus to Fed Chair Janet Yellen’s speech later today to see if she will keep the possibility of a June rate increase alive. She will appear at the World Affairs Council of Philadelphia.
In other currencies, the euro rose to as high as $1.1372 in Asian trading today, while the pound dropped to a three-week low of $1.4350 after being hurt by the latest Brexit poll showed those wanting the UK to leave the EU have gained ground. The ITV poll showed the “leave” camp was ahead at 45% versus the “remain” at 41%.
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