What Is The Fate Of The King Of Currency After The Expected NFP Failure? - Kakiforex | Forex markets for the smart money. What Is The Fate Of The King Of Currency After The Expected NFP Failure? What Is The Fate Of The King Of Currency After The Expected NFP Failure?

June 8, 2021

What Is The Fate Of The King Of Currency After The Expected NFP Failure?

 Disappointment over the U.S. NFP jobs report has plunged the greenback dollar falling sharply against its major rivals in response to the year’s U.S. bond yields also declining.


However, the US dollar was seen gaining some support in today's Asian session by trading steady against most major currencies, due to the mixed performance displayed in the US stock market.


The Dow Jones stock index lost 126 points and the S&P 500 ended little changed, while the Nasdaq managed to close the green on Monday's trading session.


Job creation in May unfortunately, failed to meet market forecasts by only registering 559,000 jobs compared to the expected increase of 671,000.



This caused market expectations to see discussions of tightening in current monetary policy at the FOMC policy meeting in June, fade.


Markets are now awaiting the release of the latest inflation data on Thursday that will provide further clues on the Federal Reserve’s (Fed) next move. Earlier, the annual inflation rate was reported to have jumped to 4.7% which was the highest rate since September 2008.


Meanwhile, the fall of the US dollar has provided an opportunity for most major currencies to rise higher, with the euro and pound rebounding from their weekly lows, where they traded steady below 1.22000 and 1.42000 against the USD, respectively.


The increase recorded by the Canadian dollar was relatively limited as readings of Canadian employment data showed a three -fold higher -than -expected decline and the unemployment rate also rose.