Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar held firm as the week kicked off in the Asian trade session Monday morning. Traders were digesting solid non-farm payroll (NFP) released on Friday.
There is also a decrease in sentiment as trade talks between the United States and China seem to be stalling as tensions escalate, once again.
The dollar index, which measures the U.S. currency in a basket against six other Forex units, was trading around 97.704 by lunchtime, Hong Kong time. The dollar index gained 0.3 percent on Friday.
The EUR/USD Forex market was trading at 1.1075. On Friday, the euro currency hit a one week low price point at 1.1039.
The USD/JPY currency exchange rate was trading at 108.57 yen. This Forex market rose to 108.92 yen, after Friday’s non-farm payroll crossed the wires. The U.S. currency then lost some momentum.
Dollar Traders Digest a better than expected Non-farm Payroll Report
On Friday, the non-farm payroll (NFP) shattered expectations for the month of November. The U.S. labor force added 266,000 new jobs. This was the largest gain in ten months.
The unemployment rate ticked lower from 3.6 percent to 3.5 percent. This is a new five decade low. Hourly wages were mixed but showed some signs of improvement.
The NFP signals that the 17 month trade war with China, which has hit the manufacturing sector hard, has yet to spill into the other sectors of the world’s largest economy.
This could change if trade tensions flare up again. If the U.S. White House slaps $156 billion in new tariffs on Chinese goods on December 15, the economy could continue to slow further. This is worrying Forex traders.
On Friday, White House economic adviser Larry Kudlow said that the December 15 deadline was still in place. However, Kudlow said that President Trump is pleased with the progress in trade talks.
In Chinese economic data, for the month of November, exports shrunk for the fourth month in a row as manufactures are under pressure thanks to this trade war.
