King Dollar was dealt a knockout blow on Friday afternoon after US Non-Farm payrolls printed well below market expectations.

The US economy added only 75k jobs against the 185k expected in May while wage growth disappointed by rising 0.2% versus the 0.3% m/m expectations. Although the unemployment rate held at a 49-year low of 3.6%, the overall flavour of the report is quite bitter and this continues to be reflected in the Dollar’s valuation. Market speculation over the Federal Reserve cutting interest rates is set to intensify following today’s dreadful jobs report. With labour markets showing some cracks and concerns rising over ongoing trade tensions impacting the US economy, Dollar bears may take full control of the driver’s seat sooner than expected.

Looking at the technical picture, the Dollar Index (DXY) remains under pressure on the daily charts. A weekly close below 96.50 is seen opening a path towards 96.00 in the short to medium term.

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