USD rises on higher-than-expected jobs data
Daily Currency Update
The US Dollar Index (DXY) was up around half a percent this morning as higher than expected US Jobs data had markets rethinking possible rate cuts by the Federal Reserve. The Non-Farm Payrolls released this morning showed the economy added 272,000 jobs in May, better than the 185,000 that economists had predicted. This had markets rethinking the likelihood of a rate cut from the Fed, with predictions now anticipating that cuts may not come until November. Average earnings were also up, indicating that inflation may not cool off as much as the Fed wants it to.Key Movers
The Euro dipped against the USD this morning as the greenback gained on strong jobs data. In the overnight markets, Eurozone Gross Domestic Product (GDP) growth for the quarter came in at 0.4% year-over-year as markets expected.The Canadian dollar reversed the gains it made yesterday against the USD due to today’s Canadian job releases. The Canadian economy added 26,000 positions last month according to Statistics Canada. All the positions added were part time positions as a deeper dive showed that there were 35,000 full time positions lost compared to 62,400 part time positions being added. The US economy added significantly more jobs than expected, so the Loonie was on the back foot heading into the weekend. Oil was even to yesterday as the West Texas Intermediate (WTI) benchmark price sat around $75 a barrel. Investors will be watching production numbers from The Organization of the Petroleum Exporting Countries (OPEC+) as the Saudi Oil minister stated overnight that planned output increases could be reversed to make sure prices remain stable.
Expected Ranges
- EUR/USD: 1.0826 - 1.0919 ▼
- GBP/USD: 1.2727 - 1.2806 ▼
- AUD/USD: 0.6604 - 0.6706 ▼
- USD/CAD: 1.3665 - 1.3762 ▲