USD Under Pressure Following Unexpectedly Weak NFP Report
I think many watching the market must be in complete shock and
rubbing their eyes when reading the headline that the United States
added an unbelievably weak 38,000 jobs to its economy during the month
of May. This headline reading is nothing else but shockingly unexpected,
and represents the weakest NFP headline reading for almost six years.
The USD is understandably encountering heavy selling pressure following this disastrous jobs number, while the longer-term prospects for the Dollar will be correlated to how the US Federal Reserve look at this NFP report.
Speaking of which, it is worth considering that the Federal Reserve
are now supposedly "data dependent", meaning the US central bank are no
longer just focusing on job reports and will be focusing on the wider
aspects of US economic data as a whole.
The wider aspects of the US
economy have been performing stronger than expected recently, which is
exactly why US interest rate expectations for the summer have been
revived over the past month.
This NFP report will not completely close the door on US interest rate talk yet, but it does add another sudden turn on this roundabout regarding how the US economy is really performing.