If horrendous job numbers are unable to faze King Dollar, then what can?
US non-farm payroll employment dropped by a staggering 701,000 in March, the worst in 11 years as the coronavirus outbreak swept through the United States like a crazy tornado. The unemployment rate jumped from 3.5% to 4.4%, its largest over-the-month increase since January 1975 while average hourly earnings rose 0.4% month-on-month.
This disappointing US jobs report continues to illustrate a very gloomy picture and highlights how badly the black swan event is impacting the largest economy in the world. Could this be a bitter appetiser of what to expect data-wise in the next few months? Time will tell.
Focusing on the technical picture, the Dollar held steady despite the abysmal jobs report with the Dollar Index (DXY) trading around 100.80. It seems the dollar is still seen as a place of safety despite rising fears over the US economy and this continues to be reflected in price action. Even if economic conditions get really ugly in the United States, it may be able to weather the storm compared to other economies across the world.
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