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Mixed Data Pushes Dollar Forex Market Further Down

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  • NFP Numbers Come in Lower Than Expected
  • Euro Off Multi-Week High
  • Wall Street Dips After Positive Week

There was mixed data in the US today which has given the Dollar some continued pressure on what has been a challenging week for the currency overall. A strengthening forex market against the USD had emerged with the Euro and Sterling both doing impressive work to regain some power following their own recent slump. Lower than expected NFP numbers have taken the shine off the week but failed to let the Dollar back in although the Euro retreats from a recent high. Wall Street too has lost a little in early trading as it looks to close out yet another good week.

Underwhelming Jobs Data Impacts Dollar Again

No matter the data this week, those forex trading the US Dollar have seen nothing but downward pressure so far. First, the dovish approach of the Fed caused a bounce back in other major currencies, recovery from both the Pound and Euro. Now, the news that US job growth has been less than impressive in August, drops the Dollar further. 

This is seen as something of an immediate reaction to the disappointing results, though overall, it could in fact lead to an increase in strength for the Greenback if traders begin to retreat back to the traditional safe haven. For the moment though, the impact of the NFP report which showed a huge gap in the number of jobs added, is that the Dollar weakness continues. 

Euro Also Falters Off-Peak Position

The NFP report was expected by analysts, to show 720,000 jobs had been added in the previous month. It was instead a huge miss at 235,000 that seems to not only have impacted the US side, but the Euro too. The common currency has had such an excellent week since the supportive note struck by Fed Chief Jerome Powell. 

It has dropped back today though, giving up the 1.19 mark with forex brokers against the USD. Strong inflation figures of nearly 3%, and the fact that the ECB is rumored to be considering tapering their own bond-buying plans sooner than expected has managed to further push the Euro against a Dollar that has been weak in the last several days. The Euro will surely move more through today as the news settles. 

Wall Street Holding Firm 

The news of disappointing job numbers has negatively impacted stocks today. Not all that much, however. The Dow Jones shed around 100 points in early trading, but the equities market is largely seeing this disappointment through in the positive manner that has become characteristic. 

If anything, such employment data could even be seen as something of a positive for those who are bullish on the market. It certainly works to quash fears of an overheating economy for the moment related to inflation. It also firmly puts any tapering rumors on the back foot with Fed Chief Powell well-known to be on the lookout for more positive employment data.

The Blogger Scientist is a "Medical Physiologist" and a "Financial Asset" Content Creator who aims at enlightening web reader on varying Financial Assets such as Stocks, FX, Crypto, MLM,. HYIP among others.

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