US Dollar Recovers Slightly After Reacting to NFP Report on Friday
The US dollar appears to be recovering, climbing slightly higher on Monday after sliding down on the release of a weak NFP report late last week. At the time of writing, the US dollar index DXY is trading at around 98.85.
According to the NFP report, nonfarm payrolls in the US rose by 136k in September against a 168k increase in jobs during August and 154k rise expected. On the positive side, however, the unemployment rate fell close to a 50-year low of 3.5% for the month of September.
A weaker than expected NFP print on the back of other weak economic data from the manufacturing and services sectors of the US economy, in addition to news about Trump’s impeachment inquiry, have kept the dollar under pressure since the beginning of this month.
The dollar is likely to trade cautious into this week in anticipation of the upcoming trade negotiations between US and China scheduled for Thursday and Friday. There is a high expectation in the markets that there could be real progress after a long time towards a trade deal. However, the sentiment isn’t too optimistic just yet despite promising developments so far, as Chinese officials appear reluctant to consider a broad trade deal being proposed by Trump.
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