You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly roundup: US dollar retreats as US employment figures disappoint

currency-newsWeekly roundup: US dollar retreats as US employment figures disappoint
The US dollar suffered a broad selloff through last week’s session, with the currency struggling to attract support in light of some underwhelming US jobs data as well as the prevalence of a risk-on environment.

This weakness in USD exchange rates was present from the very start of the session, amid lingering disappointment over Federal Reserve, Chair Jerome Powell’s speech at the Jackson Hole summit the previous week, after he remained coy on when the bank might actually begin tapering its bond buying programme.

The publication of the latest ADP employment report then reinforced the USD selloff in the middle of the week, after August’s figures printed well below expectations.

The ‘greenback’ then limped over the finishing line on Friday with the release of the latest US non-farm payroll report. These revealed the US economy only added 235,000 new jobs in August, well below the 750,000 that had been forecast.

This stoked concerns that the Delta variant may be impacting the US economy more than previously thought and could make the Fed more hesitant to start its tapering plans.

Turning to this week’s session, a lull in notable US data releases could see the direction of the US dollar dictated mostly by market sentiment, potentially leading to additional losses for the ‘greenback’ if the risk-on mood continues to prevail.

Last week’s initial jobless claims look to be the highest impact US data release of the week. Will the continued downtrend in new claims help the US dollar to claw back some ground later in the session?
Philip McHugh

Philip McHugh

Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure

Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.