Dollar Dumped to 3-Week Lows as NFP and Unemployment Rises

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USD Suffers Despite NFP Job Data Rising

The greenback sustained losses against most of its pairs on Friday following the release of the NFP job data which saw a job increase of 213K in June and wage growth also rising, yet an increase in the unemployment rate.

Tuesday, July 3: Greenback Posted Gains Following Strong PMI

USD

The greenback recorded gains against most of its rivals on Tuesday following the ISM’s manufacturing PMI rising to 60.2 in June beating estimates which forecast a decline to 58.5 points.

EUR/USD dropped to 1.610, and USD/JPY meanwhile broke the resistance level of 110.62 on Tuesday,

Wednesday, July 4: EUR Regains Footing on ECB Hike Chatter

EUR

The Eurozone currency was able to recover from its recent slip to become one of the best-performing currencies of the day. The increase in speculation on ECB rate hike was the main catalyst behind its movement.

EUR/USD started at 1.1641 but went up to a high of 1.1676, EUR/JPY also bounced back from 128.54 to end the session at a high of 128.96, and EUR/GBP went up to a high of 0.8827

Thursday, July 5: EUR Rally Stalls, USD Dips Ahead Of FOMC Minutes

GBP

The Pound Sterling started the day on a strong note, recording gains against most of its rivals except Aussie and kiwi. There was no apparent catalyst for the strength of the currency, but some market experts believe that it was due to the better-than-expected PMI reading on Wednesday

GBP/USD went up to trade at 1.3264, GBP/JPY also went up to 146.79, and GBP/CHF was up to 1.3150 by the end of the day.

USD

The US Dollars was the second weakest currency of the week behind Yen. There was no direct catalyst for the slide in the price of the currency but some experts believe it was due to preemptive positioning and/or profit-taking ahead of the FOMC’s meeting minutes, the ADP report, and ISM’s non-manufacturing PMI report.

USD/JPY dipped to 110.61, USD/CHF also dropped to end the day at 0.9914, and USD/CAD slipped to 1.3131

Friday, July 6: Dollar Dumps as NFP Data Disappoints

Nonfarm payrolls went up by 213,000 jobs in June, according to the data released by the Labor Department. The unemployment rate meanwhile has gone up to 4% from the previous 18-year low of 3.8% in June. This is the first increase in unemployment in 10 months.

Average hourly earnings meanwhile increased by five cents or 0.2% in June, after going up 0.3% the previous month and this keeps the annual increase in average hourly earnings at 2.7%.

USD/JPY dropped to 110.42 after starting the day close to 111.00, EUR/USD meanwhile went up following the NFP report and remained firm at 1.1745, GBP/USD also rose on Friday to 1.3285, and USD/CAD went up to trade at 1.3140 following the employment report for the month of June in both Canada and the US.

 

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