The NFP wave made the US dollar suffer with significant losses as the
released data for May disappointed market participants. The results showed only
38,000 jobs created amid the expectations
of 160,000 and the weak data dipped the US dollar 1.6% against the
major currencies.
Following this the likelihood of an increase in interest rates by Fed next week slightly thinned, which reflected to the dollar. In view of the forthcoming referendum in Britain, central bankers may refrain from actions this month. Expectations for rates hike in July also decreased, but probably Janet Yellen will draw attention for possibly tightening the monetary policy later today in Philadelphia.
On Friday the dollar dipped against the yen to 106.50 as a result of negative data, but today started the week with declines again to return around the levels at 107 during the early trading. The pair nears the crucial level at 105 and this awakes the fluctuation about intervention by the Tokyo authorities in the foreign exchange market.
The greenback lost ground against the single currency. The euro climbed to 1.1373 after last week had depreciated to 1.1097. Despite the losses for the greenback due to weak data, overall US economy remains framed and a rates hike is more likely to be postponed this month as now the focus is more on vote in UK rather than the employment report.
The British pound fell 0.8% against the US dollar this morning, because it became clear that the preliminary surveys showed Leave side ahead. Sterling dipped to 1.4351 dollars.
Following this the likelihood of an increase in interest rates by Fed next week slightly thinned, which reflected to the dollar. In view of the forthcoming referendum in Britain, central bankers may refrain from actions this month. Expectations for rates hike in July also decreased, but probably Janet Yellen will draw attention for possibly tightening the monetary policy later today in Philadelphia.
On Friday the dollar dipped against the yen to 106.50 as a result of negative data, but today started the week with declines again to return around the levels at 107 during the early trading. The pair nears the crucial level at 105 and this awakes the fluctuation about intervention by the Tokyo authorities in the foreign exchange market.
The greenback lost ground against the single currency. The euro climbed to 1.1373 after last week had depreciated to 1.1097. Despite the losses for the greenback due to weak data, overall US economy remains framed and a rates hike is more likely to be postponed this month as now the focus is more on vote in UK rather than the employment report.
The British pound fell 0.8% against the US dollar this morning, because it became clear that the preliminary surveys showed Leave side ahead. Sterling dipped to 1.4351 dollars.
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