Home Daily Commentaries USD slumps amid weaker-than-expected jobs data

USD slumps amid weaker-than-expected jobs data

Daily Currency Update

The US dollar dipped this morning, with the US dollar index (DXY) trading at the 102.83 level after the release of weaker-than-expected jobs data. The US economy added 209,000 jobs in June versus the expected 230,000. This may relieve some pressure off the Federal Reserve to implement aggressive interest rate hikes as job numbers ease. Oil has rebounded to the $71 a barrel range as yesterday’s US oil data showed a larger-than-expected drawdown on inventories.

Key Movers

The euro and pound were both down slightly to end the week heading into the US jobs data release, however, both bumped back up after the release showed fewer jobs added than expected. Currently, the EUR/USD pair sits at 1.0912 while the GBP/USD pair hovers around the 1.2788 mark.

After 3 straight days of losses, the Canadian dollar is making gains in early trading this morning. Recent data showed that the Canadian economy has added 3 times as many jobs in June as expected. Economists had been calling for the addition of 20,000 jobs but the release showed the addition of 60,000 new jobs, far surpassing the anticipated mark. A bump in oil towards the $72 a barrel mark is also helping the Loonie to end the week on a positive note. The USD/CAD pair currently trades in the 1.3301 range.

Expected Ranges

  • EUR/USD: 1.0838 - 1.0921 ▲
  • GBP/USD: 1.2681 - 1.2793 ▲
  • AUD/USD: 0.6602 - 0.6694 ▲
  • USD/CAD: 1.3306 - 1.3386 ▼