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Solid NFP fails to impress Dollar bulls

Market expectations of a probable US interest rate hike in June were reinforced by today’s blockbuster U.S jobs report which illustrated steady growth in the US labour market.

The US economy created 223,000k jobs in May while the unemployment rate unexpectedly dropped to its lowest level in 18 years to 3.8% from 3.9% in April.  With average hourly earnings exceeding estimates by rising 2.7% YoY, speculation may heighten over the Fed adopting a more aggressive approach towards monetary policy normalization this year. Interestingly Dollar bulls were unimpressed by today’s solid US jobs report with the Dollar Index trading around 94.15 as of writing.

Focusing on the technical picture, the Dollar Index remains bullish on the daily charts as there have been consistently higher highs and higher lows. An intraday breakout above 94.35 could encourage an inline higher towards 94.50 and 95.00, respectively. Alternatively, a failure for prices to keep above 94.00 could result in a decline towards 93.40.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.



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