USD wobbles after jobs data misses expectations
Friday 4 June, 2021
Daily Currency UpdateUSD - United States DollarThe US dollar fell sharply after a report on jobs growth in May missed analyst estimates. Before the report, the dollar held near a three-week high. The US Dollar Index was down 0.40% at 90.15 at the time of writing. Nonfarm payrolls increased by 559,000 jobs last month, below economist estimates of 650,000. The Labor Department also revised April’s data to show payrolls rising by 278,000, up from 266,000 as initially reported. The unemployment rate fell to 5.8% from 6.1%.The softer-than-expected number, an indication that there are still bumps in the economy’s path to recovery, could continue to weigh on the US dollar in the medium-term. This, combined with the US Federal Reserve’s view that inflationary pressures are temporary, could help explain why the central bank will hold the line on monetary policy.
Key MoversDemand for the pound climbed against the dollar after the weaker than expected US jobs data knocked USD down. GBPUSD was up 0.67% this morning, trading just below the 1.42 handle at 1.4197. Investors are closely monitoring the Delta variant cases in the UK and the upcoming end to lockdown on June 21st, which could provide more direction for the currency pair. The euro also gained against USD this morning, up 0.44% at 1.2179 at the time of writing. The Australian dollar gained 1.06%, climbing back over 0.77 to trade at 0.7738 at the time of writing. Thanks to a broadly softening US dollar, the Canadian dollar shrugged off a jobs report that showed Canada lost jobs for a second straight month. USDCAD was down 0.28%, trading at 1.2073 at the time of writing.
- EUR/USD: 1.210 - 1.218 ▲
- GBP/USD: 1.408 - 1.42 ▲
- AUD/USD: 0.764 - 0.773 ▲
- USD/CAD: 1.207 - 1.213 ▼