Dollar Exhibits Weakness Again


The U.S. dollar stayed weak against most of is major counterparts on Monday, extending recent slide, amid rising hopes the Federal Reserve will keep its easy monetary policy for some more months.

The latest data on U.S. non-farm payroll employment has contributed significantly to this view about the central bank’s stand with regard to rates.

Data released by the Labor Department on Friday showed a much less than expected increase in U.S. non-farm payroll employment in the month of April, raising prospects for a low interest regime for a longer duration. The data showed the economy added 266,000 jobs in April after surging by a downwardly revised 770,000 jobs in March.

Economists had expected employment to spike by 978,000 jobs compared to the jump of 916,000 jobs originally reported for the previous month.

The dollar index dropped to a nearly 2-1/2-year low, sliding to 90.04, before recovering to 90.21, still down marginally from the previous close.

Against the Euro, the dollar firmed up to $1.2143 after staying weak for much of the European session. On Friday, the dollar had settled at $1.2163 a unit of Euro.

Eurozone investor confidence improved to the highest level in more than three years in May, survey results from Sentix showed. The investor confidence index rose notably to 21.0 in May from 13.1 in April, suggesting that the recession caused by the coronavirus has been overcome. The score was the highest since March 2018.

The Pound Sterling was stronger by more than 1% against the dollar, fetching $1.4132 a unit, after having settled at $1.3981 on Friday.

The Yen was weaker at 108.75 a dollar, easing by about 0.15% from 108.59.

Against the Aussie, the dollar is flat now with the AUD-USD at 0.7840. The total value of retail sales in Australia was up a seasonally adjusted 1.3% on month in March at A$30.699 billion, the Australian Bureau of Statistics said. That follows the 0.8% contraction in February.

The Swiss franc was flat as well at 0.9007 a dollar, while the Loonie firmed up to 1.2094 a dollar, gaining from 1.2133.

The material has been provided by InstaForex Company –


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