After a shockingly dismal NFP result last Friday the US dollar went into a tailspin
And here’s What Happened: The EUR/USD jumped by 1.9% and reached a three week high at 1.13658. On a weekly basis, it increased by 2.3%. The USD/JPY on the same day dived by 2.2% The Cable (GBP/USD) rose from 1.4410 to 1.4580 before retracing gains on fears of a Brexit And predictably, gold surged by over $30 to $1247 following the data release
This is a perfect example of when the fundamentals get in the driver’s seat The release of Nonfarm Payrolls data revealed that only 38,000 new jobs were added in May – that’s less than a third of the previous month’s NFP data!
The last time the NFP number was lower than was over 5 years ago, back in September 2010.
So it comes as no surprise that Federal Reserve officials are now seriously questioning whether an interest rate increase will be likely in the coming months
In particular, Fed Governor, Brainard, implied that the NFP data were average and through her comments hinted that she might not be voting for an interest rate increase during this month.
She also expressed her concerns on the likelihood of a Brexit on 23 June when the referendum takes place in the UK, and the unfavourable impact that this could have both on the U.S. economy and the global markets.
Coming up this week
Chinese May trade data is due out on Wednesday at 3am (GMT). The expectation is for the trade surplus to widen compared to the previous month’s data.
And on Thursday, China’s Consumer & Producer Price Inflation data is due with an expectation that consumer prices will have risen last month while producer prices are expected to have fallen.
And tomorrow at 9pm (GMT), the Reserve Bank of NZ has a monetary policy update. This one may prove interesting with analysts split over which way it will go. Some are expecting no change, while others are forecasting a 25 basis point cut to a record low 2%.
That’s it for this week. A lot of US dollar damage – what do you think the rest of the week holds for the greenback? Comment below and let us know.
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After a shockingly dismal NFP result last Friday the US dollar went into a tailspin
And here’s What Happened:
The EUR/USD jumped by 1.9% and reached a three week high at 1.13658.
On a weekly basis, it increased by 2.3%.
The USD/JPY on the same day dived by 2.2%
The Cable (GBP/USD) rose from 1.4410 to 1.4580 before retracing gains on fears of a Brexit
And predictably, gold surged by over $30 to $1247 following the data release
This is a perfect example of when the fundamentals get in the driver’s seat
The release of Nonfarm Payrolls data revealed that only 38,000 new jobs were added in May – that’s less than a third of the previous month’s NFP data!
The last time the NFP number was lower than was over 5 years ago, back in September 2010.
So it comes as no surprise that Federal Reserve officials are now seriously questioning whether an interest rate increase will be likely in the coming months
In particular, Fed Governor, Brainard, implied that the NFP data were average and through her comments hinted that she might not be voting for an interest rate increase during this month.
She also expressed her concerns on the likelihood of a Brexit on 23 June when the referendum takes place in the UK, and the unfavourable impact that this could have both on the U.S. economy and the global markets.
Coming up this week
Chinese May trade data is due out on Wednesday at 3am (GMT). The expectation is for the trade surplus to widen compared to the previous month’s data.
And on Thursday, China’s Consumer & Producer Price Inflation data is due with an expectation that consumer prices will have risen last month while producer prices are expected to have fallen.
And tomorrow at 9pm (GMT), the Reserve Bank of NZ has a monetary policy update. This one may prove interesting with analysts split over which way it will go. Some are expecting no change, while others are forecasting a 25 basis point cut to a record low 2%.
That’s it for this week. A lot of US dollar damage – what do you think the rest of the week holds for the greenback? Comment below and let us know.