Connect with us

Precious Metals

US Dollar Gains After Strong August Jobs Report, Rising Treasury Yields

US Dollar Gains After Strong August Jobs Report, Rising Treasury Yields



This article was originally published by Forex News

The US dollar is looking to extend its winning streak against multiple currency counterparts to close out the trading week. The greenback is rising on Friday after an impressive jobs report last month sparked confidence that the world’s largest economy is rebounding in the aftermath of the public health crisis.

According to the Bureau of Labor Statistics (BLS), the U.S. economy created 1.374 million new jobs last month, falling short of the market forecast of 1.4 million. The unemployment rate declined to a better-than-expected 8.4%, from 10.2% in July.

The July job gains were revised down to 1.73 million, while the June job gains were little changed at 4.79 million. Average weekly hours edged up to 34.6, average hourly earnings rose 0.4%, and the labor force participation rate advanced to 61.7%. Government payrolls surged 344,000, and manufacturing payrolls picked up 29,000.

Following the labor report, Treasury yields increased as the benchmark 10-year note rose four basis points to 0.662%. The two-year note increased 0.8 basis point to 0.133%, and the 30-year bond yields advanced 6.7 basis points to 1.408%.

The leading stock indexes were mixed in pre-market trading: the Dow Jones Industrial Average rebounded 119 points, the S&P 500 was flat at 3,461, and the Nasdaq Composite Index shed 134 points. The metal markets were also mixed on Friday, with gold up $0.02% and silver slumping 0.32%. This comes after the Dow Jones, S&P 500, and Nasdaq were slaughtered during the Thursday session.

The US Dollar Index, which gauges the greenback against a basket of currencies, continued its winning streak after the release of the August jobs numbers. The index rose 0.26% to 92.98, from an opening of 92.80, lifting its weekly gain to around 0.5%. But it is still down nearly 4% year-to-date.

There are signs that the buck could be on the rebound after cratering 13% since hitting a peak of 103.00 earlier this year. Although analysts believe that the dollar’s downward trending could occur for another three months, the currency might have stabilized in the 92–94 range. With the worst behind it, could the dollar stage a comeback in 2021?

The USD/CAD currency pair tumbled 0.25% to 1.3096, from an opening of 1.3127. The EUR/USD fell 0.13% to 1.1839, from an opening of 1.1852.

© AndrewMoran for Forex News, 2020. |
Permalink |
No comment |
Add to

Post tags: , , , , , , ,

Feed enhanced by Better Feed from Ozh


Author: Andrew Moran


China Economy Crashes Worse Than Expected Amid Covid Lockdowns

China Economy Crashes Worse Than Expected Amid Covid Lockdowns

Following Friday’s catastrophic new credit data, which saw the fewest new loans…

Continue Reading
Precious Metals

Karora: Haywood Upgrades Rating, Lowers Price Target On Q1 Results

On May 12th, Karora Resources Inc. (TSX: KRR) reported its first quarter financial results. The company announced total revenues of
The post Karora: Haywood…

Continue Reading
Precious Metals

Confessions of a Day Trader: Was that the Red Sea we just saw parting?

Luck’s a fortune in a dangerous week, but what goes down, must go up. Eventually. Maybe. At least Friday the … Read More
The post Confessions of a Day…

Continue Reading