The US Dollar Is in the Red due to Weak Labor Market Data

On Friday, the US dollar fell against a basket of major currencies due to a weak report on the US labor market for May. The number of people employed in the nonfarm sector was only 75K, while experts expected an increase by 185K. Average hourly wages increased by 0.2% instead of 0.3%. The unemployment rate remained at the same level of 3.6%. These statistics have strengthened forecasts that the Fed may reduce interest rates at upcoming meetings. The US dollar index closed in the negative zone (-0.52%).

Meanwhile, the Mexican peso rose sharply against the dollar after the US and Mexico concluded a migration agreement at the end of last week, preventing a tariff war and improving investors’ sentiment. The agreement will speed up the program known as the Migration Protection Protocols, which came into force in December. This program sends migrants who seek asylum in the United States to wait in Mexico while their cases are being considered. The agreement will mean that the United States immediately expand the implementation of the MPP across the entire 2,000-mile (3,220 km) southern border.

The "black gold" prices have been growing. At the moment, futures for the WTI crude oil are testing the mark of $54.20 per barrel.

Market Indicators

On Friday, aggressive purchases were observed in the US stock market: #SPY (+1.00%), #DIA (+0.98%), #QQQ (+1.93%).

The 10-year US government bonds yield rose slightly. At the moment, the indicator is at the level of 2.12-2.13%.

The news feed on 2019.06.10:

- Data on UK GDP at 11:30 (GMT+3:00);
- Manufacturing production in the UK at 11:30 (GMT+3:00);
- JOLTS job openings in the US at 17:00 (GMT+3:00).

by JustForex, 2019.06.10

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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