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

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.
If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *