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Global dollar gained momentum after US employment data

Global dollar gained momentum after US employment data

The bill rose because the US added many more jobs than expected and the Fed could delay lowering rates.

Photo: Pixabay

He global dollar rebounded this Friday after data showed that USA created many more jobs last month than expected, suggesting that the Federal Reserve (Fed) It could take more time to start its monetary relaxation cycle this year.

He dollar index —which compares the performance of the greenback with a basket of six currencies of international relevance—rose 0.8%, to 104.91, its best daily advance since April 10, after giving up a 0.1%, to 104.05 units, near this week’s low of 103.99, the first time it was below 104 since April 9. Meanwhile, in the local exchange market, the bill also rose and exceeded 39 pesos.

For the week, the index rose 0.2% as the strong jobs number offset a run of weaker macroeconomic data that had led investors to put two U.S. rate cuts back on the table. Fed of a quarter point in 2024. Meanwhile, the dollar rose 0.6% compared to and in, to 156.64 units.

US employment data weighed on the dollar

US nonfarm payrolls totaled 272,000 Job positions last month, the data showed, while revisions showed 15,000 fewer in March and April than previously reported. Economists polled by Reuters had expected an increase of 185,000 jobs in May.

The rate of unemployment, However, it rose to 4%, from 3.9% in April, exceeding a level it had maintained for 27 consecutive months.

“Markets and Federal Reserve They bow to the holy grail of a figure, and that is the payroll report. Of course, it’s not just about that number, but also about the wages, that are higher than expected,” he said David Rosenberg founder and president of Rosenberg Research in Montreal.

“But, as they say, ‘it is what it is.’ And since we know what the Fed focuses on, and how the Fed is so omnipresent when it comes to market activity in stocks and bonds, consider this is a bearish report because it will simply embolden the hawks FOMC (Federal Open Market Committee),” he added, as the odds of a rate cut in September dropped to 50.8%, down from 70% on Thursday.

Source: Ambito

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