NFP Readings Far Baked From Fire, USD Bad! - Kakiforex.com - Financial Market Media No. 1 in the World NFP Readings Far Baked From Fire, USD Bad! NFP Readings Far Baked From Fire, USD Bad!
InstaForex

May 10, 2021

NFP Readings Far Baked From Fire, USD Bad!

 Unexpectedly, the reading of the US NFP jobs report which is expected to rise strongly in April has disappointed the market and thus sunk the US dollar trade lower.


At the opening of the Asian session, the dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded around a more than two -month low of 90.20.


In April, the U.S. economy reportedly created just 226,000 jobs, far lower than the nearly 1 million increase the market had predicted.


Also surprising to the market was the increase in the unemployment rate which rose to 6.1% from 6.0% recorded in the previous month, and also missed expectations of a decline of 5.8%.



This bleak reading confirms an earlier Federal Reserve (Fed) statement saying that the economic recovery is still turbulent and still far from being fully completed.


This caused market expectations for the Fed to raise interest rates sooner than expected to fade.


The weakness of the US dollar has provided an opportunity for major currencies to climb higher, especially the pound sterling which rebounded above the 1.4000 price level, the highest since late February.


The euro, meanwhile, touched a two -month high with trading stronger around 1.21700 at the start of the Asian session.