Greenback bulls are bruised by payrolls blow
On Monday, the major American currency at up to three-week lows against other six key currencies, following a strongly downbeat employment report, which helped market participants to rule out the probability of another US interest rate lift already this month.
The US dollar index traded at 94.161, compared to Friday’s outcome of 93.855 - a level last observed on May 12. On Friday, it slumped 1.6%, posting its second greatest one-day dip this year.
Additionally, Friday's data revealed that last month nonfarm payrolls surged by just 38,000 jobs - the fewest for 5-1/2-years, thus breaking forecasts for a soar of approximately 164,000 jobs.
Many financial analysts state that Friday's American nonfarm payrolls have appeared to be a shocker for most markets.
Market participants have just priced out the risk of a rate lift at the Fed’s June 14-15 policy statement, and diminished the overall likelihood of a July rate lift to about 30% from 60%.
Many investors expect Janet Yellen to keep hopes for a July rate lift alive.