The dollar has rebounded after a poor performance on Friday, reaching a strong position against the euro and the pound this morning. This comes as the US have stepped back from launching a trade war with Mexico. President Trump had originally pledged to impose a 5% tariff on Mexican goods from today, but an agreement has been reached between the two nations, instigating an expansion of Mexico’s border program to crack down on illegal immigration.
On Friday afternoon, Non-Farm Payrolls showed that job creation in the US showed sharply last year, with just 75,000 created. Economists had predicted that 175,000 new jobs would be created, so the real figure proved to be quite a miss. Wage growth was also weak, at 0.2% month on month and 3.1% year on year.
This poor data caused the dollar to fall due to expectations that it would increase the likelihood of interest rate cuts. The greenback consequently fell to its lowest level since March.
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