Non-Farm Payrolls were released on Friday, coming in at 128,000 and beating market expectations of 89,000 by a significant margin. This initially resulted in a boost for the dollar. However, this was short lived as ISM Manufacturing PMI came in short of market expectations at 48.3, marking the third straight month of contraction in the manufacturing sector.
This poor data caused the dollar to weaken due to concerns over the US economy, with the Federal Reserve expected to resume rate cuts if data worsens. However, the greenback looks stronger this morning.
This week, we’ll continue to see various data releases for the US, including Balance of Trade and Non-Manufacturing figures. Various Federal Reserve officials will also speak this week.
In US-China trade news, US commerce secretary Wilbur Ross said yesterday that “we’re making good progress” regarding the standoff between the US and China over tariffs.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
