US Dollar Trades Steady, Supported by Strong NFP Report and Risk-off Sentiment
Arslan Butt • 1 min read
The US dollar is trading strong and steady early on Monday following the release of a better than expected jobs data late last week, revealing brighter prospects for the state of the US economy. At the time of writing, the US dollar index DXY is trading around 98.65.
US job growth increased at a faster pace than forecast during the month of January, especially supported by robust expansion in employment opportunities in the construction sector. In addition, the US dollar remains in favor as a safe haven currency as the number of coronavirus cases and death toll continue to rise in China.
The risk-off sentiment in markets is keeping other major currencies under pressure, safe haven currencies like the Japanese yen trade strong. The US dollar also received more attention among traders as the US economy continues to show signs of better growth when compared to other leading economies around the world.
Analysts expect the US dollar to continue trading bullish until further clarity emerges about the potential economic impact of the coronavirus outbreak. With some factories set to reopen in China this week, the focus remains on how fast the economy is able to make a comeback and recover from the shutdown caused due to the epidemic.