The dollar index (DXY00) today is down by -0.73%. The dollar is under pressure today on reduced safe-haven demand as news of possible US-China trade talks sparked a rally in stocks that boosted risk sentiment. The dollar also fell after US Apr average hourly earnings rose less than expected, a dovish factor for Fed policy. However, on the positive side for the dollar, US Mar factory orders posted their largest increase in 8 months, and Apr nonfarm payrolls rose more than expected, a sign of labor market strength that is hawkish for Fed policy.
US Apr nonfarm payrolls rose +177,000, stronger than expectations of +138,000, although Mar nonfarm payrolls were revised lower by 43,000 jobs to +185,000 from the previously reported +228,000. The Apr unemployment rate was unchanged at 4.2%, right on expectations.
