The American dollar found it difficult to rally in yesterday’s trading despite good sentiment about the US-China trade deal. The disappointing nonfarm payroll from last Friday is causing the greenback to falter even in yesterday’s trading.
Still, the American buck still bagged a few gains here and there against other currencies in the market.
The US dollar index or DXY rose by 0.12% or 0.12 points in trading sessions. And the US dollar index futures for March 20 or DXH0 gained 0.09% or 0.087 points yesterday.
Meanwhile, when pinned against the bloc’s single currency, the American dollar failed to gain. The EUR/USD exchange rate inched up by 0.05% or 0.0006 points in Monday’s trading sessions.
On the other hand, the British pound sunk against the greenback in yesterday’s trading. The GBP USD trading pair plunged by 0.64% or 0.0084 points on Monday’s trading thanks to Brexit’s concerns.
Then, the USD JPY pair rose by 0.39% or 0.42 points yesterday. The pair traded around ¥109.88 and has reached ranges between ¥109.50 and ¥109.92.
Nonfarm Payroll Results
The American dollar weakened after the discouraging results from the US nonfarm payroll report last week. The country’s Bureau of Labor Statistics released the regular jobs data from the United States last Friday.
The December US nonfarm payrolls contracted from 256,00 to 145,000, falling further from projections of 164,000. Then, the December private nonfarm payroll also dropped from 243,000 to 139,000.
Meanwhile, the country’s unemployment rate for December remained unmoved at 3.5% as expected by experts. The participation rate for the country’s labor force in December also remained unchanged at 63.2% as projected by the market.
Later today, the US Bureau of Labor Statistics will release December core consumer price inflation. Traders are holding tight as both monthly and annual CPI are expected to remain unmoved.
If the figures turn out better than predicted, the US American dollar might surge in sessions.
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