US Dollar Slumps to 94.10, 3-Week Lows
The greenback, tracked by the US Dollar Index, has plummeted to the 94.10 area following today’s releases in the US labour market.
US Dollar drops to 3-week lows
USD has rapidly given away recent gains, retracing the rally to the current 94.30 area as the selling pressure keeps building up after US Non-farm Payrolls greatly disappointed expectations during May at 38K vs. 164K forecasted.
The results had a negative impact on expectations of a rate hike by the Federal Reserve at some point during the summer, prompting traders to quickly unwind USD positions.
Later in the session, US Factory Orders and the ISM Non-manufacturing will add to today’s releases followed by the speech by Brainard.
US Dollar relevant levels
The index is retreating 1.21% at 94.41 and a drop below 93.65 (low May 11) would allow a test of 93.08 (low May 6) and then 91.88 (2016 low May 3). On the other hand, the next up barrier aligns at 95.97 (high May 30) ahead of 95.99 (100-day sma) and finally 96.42 (high Mar.28).