BMFN - Analytics


    435.50 5.50/10
    75% of positive reviews

    Dollar rebounds against yen, Aussie in early Asia, Yellen eyed

    The yen held weaker in early Asia on Monday and the Aussie down on a rebound for the dollar after it fell sharply last week as bets for a Federal Reserve rate hike in June dropped on poor data.

    USD/JPY changed hands at 106.76, up 0.22%, while AUD/USD traded at 0.7349, up 0.26%.

    In Australia, the MI inflation gauge is due for May with a previous reading of 0.1%.

    The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last quoted at 93.90.

    Investors will be looking to a speech by Fed Chair Janet Yellen on Monday for signs on the future direction of interest rates.

    Market watchers will also be keeping a close eye on developments in the U.K. ahead of the upcoming EU referendum.

    Last week, the dollar dropped to three-week lows against a basket of its major peers on Friday after a far weaker-than-expected U.S. jobs report for May quashed expectations for a near-term rate hike from the Federal Reserve.

    The Labor Department reported earlier Friday that the U.S. economy added just 38,000 jobs last month, the smallest increase since September 2010.

    Economists had forecast that payrolls would increase by 164,000.

    April’s number was revised down to 123,000 from an earlier estimate of 160,000.

    The unemployment rate fell to 4.7% from 5% in April as more people dropped out of the labor force.

    The weak data cast doubts over the prospects for a rate hike by the Fed in the coming months and sparked renewed concerns over slowing global growth.

    The dollar had risen strongly against the other major currencies in May after Fed Chair Janet Yellen and other central bank officials indicated that the economy was on a strong enough footing to support higher interest rates.

    To leave a comment you must or Join us

    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree