The Dollar trims losses on Monday but remains far from last week's highs near 100.00.
The Greenback lost 1.6% on Friday as the US Nonfarm Payroll report revealed that job creation has been much lower than previously thought.
Friday's employment figures boosted hopes of immediate Fed cuts and undermined speculative demand for the USD.
The US Dollar is trimming some losses on Monday, as the market assimilates Friday’s downbeat employment figures, but remains capped below 98.50, well below last week’s highs near the 100.00 psychological levels.
The Dollar depreciated 1.6% on Friday, after data from the US Labour Department showed that net employment grew by 73,000 in July, below the 110,000 expected, while data from May and June were revised down by 258,000.
These figures boosted expectations that the Fed will find an excuse to lower interest rates in September, a view further supported by the resignation of Fed Governour, Adriana Kugler, also announced on Friday.
Kugler’s resignation provides a golden opportunity for US President Trump, who said that he is “very happy” about the vacancy in the Fed’s board, and that he is likely to fill it with a candidate closer to his interests of a more accommodative monetary policy.
All in all, the Dollar corrects higher in the absence of key macroeconomic data today, but with the increasing bets on Fed cuts in the coming months, keeping US Dollar bulls in check for now.
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