US Dollar Starts the Week Under Pressure – May’s NFP Weighs

The US dollar is trading somewhat under pressure, weighed down by a weaker than expected employment report which was released last Friday

Aiswarya Gopan•Monday, June 7, 2021•1 min read

US Dollar Starts the Week Under Pressure - May's NFP Weighs

Early on Monday, the US dollar is trading somewhat under pressure, weighed down by a weaker than expected employment report which was released last Friday and dented hopes of rapid economic recovery in the US. At the time of writing, the US dollar index DXY is trading around 90.22.

Against expectations for an addition of 650k jobs, the NFP report revealed an increase of only 559k jobs through the month of May. This dissipated rising concerns in the market about the economy overheating as it recovered quickly and requiring the Fed to step in earlier than its original plans.

The US dollar was driven lower not only by the disappointing figure but also because the report dented any hopes for the Fed stepping in with tapering off monetary stimulus measures anytime soon. This has helped other riskier currencies make gains against the greenback in early trading, sending the AUD, NZD as well as the CNH back up above key levels.

Later this week, the focus will once again shift to economic data releases from the US, with the CPI report scheduled to come out. This will shed light on the inflation situation in the US. In addition, traders will also watch out for the upcoming ECB meeting to compare their tone with that of the Fed.

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ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a former cybersecurity analyst, tech journalist and market researcher, who joins FX Leaders with over three years of experience in the blockchain industry. Aiswarya's areas of focus include market news out of the Asian and European markets as well as news coverage on cryptocurrencies.