The Greenback moved slightly lower against a basket of currencies as investors took the opportunity to take some profits off the table. Opening this morning at 95.60 on the US Dollar Index (DXY), the Greenback remains at a relative position of strength against its counterparts.
The catalyst for Friday’s price action was a mixed US employment report that ultimately fit the theme of a tightening US labour market. Non-farm payrolls kicked things off in slightly weaker territory than Septembers reading, although this was largely mitigated by upward revisions from prior months. More tellingly, however was the unemployment rate which fell to 3.7%, its lowest level since 1969. Adding to the broader narrative of the Fed’s thinking, NY Fed President Williams was interviewed shortly after the employment report and reiterated their commitment to a gradual tightening of monetary policy. Despite the low unemployment rate, President Williams confirmed that the rate remains accommodative and there was some way to go before reaching neutral territory.
Moving into the new week, the Dollar is set to enjoy a bank holiday and a quiet start to the week.