The dollar weakened against both the pound and the euro at the end of last week after a disappointing Non-Farm Payrolls report, but has since regained some strength. The greenback has been supported by comments made by US Secretary Janet Yellen around higher interest rates. She suggested that it could benefit the Federal Reserve.
The data for May revealed that the US economy added 559,000 jobs, above the figure of 278,000 in April but below market forecasts of 650,000. This leaves employment about 7.6 million jobs below its peak in February 2020.
This report suggests that the Federal Reserve are likely to stick to their stance of leaving monetary policy unchanged until they see more jobs created and a more ‘complete’ economic recovery.
This week, inflation rate figures will be released for the US on Thursday.
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