US dollar opens new trading week lower

The U.S. dollar continues its decline since the start of Monday’s trading, influenced by employment data released last Friday. Both job growth and wage growth in the United States have shown signs of weakening.

Dollar Index Movement:

The dollar index, which measures the performance of the U.S. currency against major currencies, dropped to 105.00 points compared to the previous day’s closing at 105.03 points. However, it rebounded to its highest level of the current trading day at 105.20 points, after hitting a low of 104.87 points.

Non-Farm Payrolls (NFP) Report:

In April, non-farm payrolls added 175,000 jobs, surpassing the previous reading of 315,000 jobs. This exceeded market expectations, which had predicted an increase to 243,000 jobs.

Wage Growth:

Average hourly earnings growth in the U.S. stood at 3.9% in April, down from the previous reading of 4.1%. This figure fell below market expectations of 4.00%.

Unemployment Rate:

The U.S. unemployment rate rose to 3.9% in April, up from the previous reading of 3.8%. This indicates higher levels than market forecasts, which had anticipated 3.8%.

Market Speculation:

Amid deteriorating labor market conditions, speculation has arisen that the Federal Reserve may reconsider and begin lowering interest rates in June, further impacting the weakening U.S. dollar.

Overall, the dollar’s performance remains closely tied to economic indicators and market sentiment.