Strong Non-Farm Payrolls Report Fails to Boost US Dollar

US Dollar (USD) Declines despite Strong Jobs Report

The US Dollar (USD) softened on Friday, with hotter-than-forecast jobs data only triggering a brief spike in the ‘Greenback’. USD investors were seemingly unimpressed that the non-farm payrolls figure exceeded forecasts in April, considering that March’s result was revised significantly lower.

Meanwhile, amid mounting fears of a US banking crisis, markets scaled back their expectations for more Federal Reserve interest rate rises. This dampened USD’s appeal.

Two Fed officials are due to speak today: one moderate and the other very hawkish. Any hints that last week’s jobs data could nudge the Fed to raise rates again could boost USD.

Pound (GBP) Mixed amid Risk-On Mood

The Pound (GBP) saw mixed movement at the end of last week’s session as a lack of UK data left GBP to trade in relation to market sentiment.

A risk-on impulse among investors saw the increasingly risk-sensitive Pound rise against is safer peers, but lose ground elsewhere.

Sterling could see muted movement again today. UK economic data is thin on the ground, and GBP investors may be hesitant ahead of the Bank of England (BoE) decision on Thursday.

Euro (EUR) Stumbles following Downbeat Data

The Euro (EUR) weakened on Friday, with the single currency initially dented by troubling German data. Factory orders in the Eurozone’s largest economy slumped by 10.7% in March, far worse than the forecast 2.2% contraction.

More disappointing data hit the Eurozone later in the morning. Retail sales in the bloc shrank more than expected, putting additional pressure on EUR.

German data missed forecasts again yesterday, seeing EUR start the week on a sour note. With no releases due for publication today, the Euro may remain on the back foot.

Canadian Dollar (CAD) Rises amid Improving Oil Prices

The Canadian Dollar (CAD) rallied on Friday. Rising oil prices buoyed the crude-linked ‘Loonie’, while upbeat Canadian employment data also lifted the currency.

Turning to today, oil prices have wavered lower this morning. If crude continues to decline, CAD could weaken.

Australian Dollar (AUD) Rangebound amid Mixed Chinese Trade Report

The Australian Dollar (AUD) moved in a narrow range overnight amid mixed trade data from China. Although the country’s exports exceeded forecasts, April saw an unexpectedly large drop in imports.

New Zealand Dollar (NZD) Edges Lower in Risk-Off Trade

The New Zealand Dollar (NZD) softened slightly last night as a cautious market mood dented the risk-sensitive currency’s appeal.

Samuel Birnie

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