The dollar index (DXY) rises to 99.00 while markets are prepared for the US NFPs.

  • The dollar cuts previous losses before reading of the NFP.
  • Investors are reducing short positions in USD after a series of negative publications in the US.
  • A discouraging employment report would increase the hopes of a relief by the Fed.

He US dollar index (DXY) shows a moderately positive tone on Friday, with investors cutting the minimum of the US dollar before the publication of non -agricultural payrolls of the US of May. The DXY approaches the level of 99.00, after reaching minimum of six weeks, at 98.35 on Thursday, on the way to a flat weekly performance.

Market forecasts anticipate an increase of 130,000 in private payrolls in May, after an increase of 177,000 in April, but the weak macroeconomic data seen earlier this week generate doubts about these figures.

It is expected that the unemployment rate has remained stable at 4.2%, but, according to some market sources, there is a possibility of an increase to 4.3%, which would exert additional pressure on the US dollar.

The weak US data have weighed on the USD

The US dollar suffered this week due to a series of discouraging economic publications, the ISM PMI readings revealed contractions in the manufacturing and services sectors, suggesting a poor contribution to the GDP of the second quarter.

Beyond that, ADP figures revealed an increase in employment in May much lower than expected, which generated speculation that the 130k forecast NFP It could be too optimistic.

In this context, a weak employment report could urge the Fed to end its waiting position and reduce interest rates in the coming months. Such a scenario would push the dollar down against its main peers.

American dollar today

The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Japanese yen.

USD EUR GBP JPY CAD Aud NZD CHF
USD 0.29% 0.28% 0.45% 0.07% 0.34% 0.19% 0.28%
EUR -0.29% -0.00% 0.13% -0.22% -0.01% -0.09% -0.01%
GBP -0.28% 0.00% 0.12% -0.21% 0.00% -0.09% -0.01%
JPY -0.45% -0.13% -0.12% -0.33% 0.01% -0.14% -0.23%
CAD -0.07% 0.22% 0.21% 0.33% 0.27% 0.13% 0.21%
Aud -0.34% 0.00% -0.00% -0.01% -0.27% -0.08% 0.00%
NZD -0.19% 0.09% 0.09% 0.14% -0.13% 0.08% 0.08%
CHF -0.28% 0.00% 0.00% 0.23% -0.21% -0.01% -0.08%

The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).

Source: Fx Street

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