Dollar punished by NFP disappointment

June 2, 2017

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.

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Article by ForexTime

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