Home Daily Commentaries USD struggles for momentum after jobs data miss

USD struggles for momentum after jobs data miss

Daily Currency Update

USD - United States DollarThe US dollar recovered slightly after dropping on Friday following softer than expected jobs numbers, but struggled to gain any substantial momentum. The US Dollar Index was trading at 90.02 at the time of writing. This was the second miss in a row on the jobs data front, which could be a reason for the US Federal Reserve to leave rates on hold for longer. Central bank policymakers have indicated that they want to see the jobs market recover before discussing the possibility of hiking rates to curb inflation. The central bank expects ‘transitory’ inflation levels to remain above 3% for the rest of the year. This week, investors will be closely watching for a well-known indicator of inflation, the U.S. Consumer Price Index (CPI) report, which is due on Thursday.

Key Movers

On Thursday, the European Central Bank will be holding its latest monetary policy meeting, setting interest rates and discussing whether to prolong their elevated pace of emergency bond-buying program. EURUSD was up 0.06% this morning, trading at 1.2170 at the time of writing.GBPUSD was up 0.17%, trading at 1.4179 at the time of writing. The pound could see a selloff if the UK government decides to deviate from its plan to fully lift COVID-19 restrictions on June 21. In the recent weeks, some scientists have advocated for pushing back the reopening date due to rising delta variant cases. Some analysts think extending the working from home advice will mean less consumer spending, which would stunt the UK’s economic recovery. Australian job ads increased for a straight 12th month in May, climbing to its highest since 2008. Total jobs ads jumped 7.9% in May from April at 4.9%, according to Australia and New Zealand Banking Group. AUDUSD was up 0.32%, trading at 0.7761 at the time of writing.

Expected Ranges

  • EUR/USD: 1.214 - 1.218 ▲
  • GBP/USD: 1.411 - 1.417 ▲
  • AUD/USD: 0.773 - 0.776 ▲
  • USD/CAD: 1.206 - 1.210 ▲