Article by ForexTime
The Greenback was vulnerable to heavy losses on Friday after May’s soft headline NFP figure of 138k fueled concerns over the health of the US economy. Although the jobless rate unexpectedly dropped to 4.3% and hourly earnings were in line with estimates at 0.2%, the overall jobs report was disappointing. With bears already exploiting the downside surprise to attack the Dollar, further currency weakness is likely in the short to medium term. Sentiment towards the US economy and Greenback have clearly taken a hit from May’s jobs report with expectations of the Federal Reserve raising US rates beyond June potentially diminishing. From a technical standpoint, the Dollar Index is bearish on the daily charts. With political instability in Washington already capping upside gains, the fading optimism over the Federal Reserve taking action beyond June should entice sellers to send the Dollar Index towards 96.00.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com