The dollar index (DXY00) fell to a 2-week low today and is down by -0.68%. The dollar tumbled today on the weaker-than-expected US Jun payroll report, which dampened speculation that the Fed will tighten monetary policy anytime soon. The dollar is also under pressure amid weakness in crude oil prices, as WTI crude fell to a 4.25-month low today, which lowers inflation expectations and is dovish for Fed policy. The dollar found some support after weekly jobless claims unexpectedly declined and after May factory orders fell less than expected.
US Jun nonfarm payrolls rose +57,000, weaker than expectations of +113,000, and May nonfarm payrolls were revised lower to +129,000 from the originally reported +172,000. The Jun unemployment rate unexpectedly fell -0.1 to a 1-year low of 4.2%, showing a stronger labor market than expectations of no change at 4.3%.
