AUGUST 2020 NFP REPORT: US DOLLAR EDGES HIGHER AFTER NONFARM PAYROLLS BEAT
- US Dollar[1] is trading slightly higher owing to a positive NFP report[2] that topped market forecast
- Nonfarm payrolls increased by 1.3-million and the unemployment rate dropped to 8.4%
- Traders await the Wall Street[3] opening bell to see if stocks can recoup prior session losses
The US Dollar is trading modestly higher with the DXY Index up by about 0.15% immediately after the release of August 2020 nonfarm payrolls data. The US labor market added 1.37-million jobs last month, which beat market estimates looking for 1.35-million job additions for the headline figure.
US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (04 SEP 2020 INTRADAY)
Perhaps most notable out of the latest NFP[4] report is how the US unemployment rate dropped to 8.4%. Not only did the unemployment rate come in lower than consensus estimates, but it also has fallen below 10% for the first time since the economy was roiled by the coronavirus pandemic earlier this year.
The overall solid NFP report is likely helping provide a bid to the US Dollar as the ten-year Treasury yield creeps up above 66-basis points, but perkiness reflected by the DXY Index might be undermined by technical resistance[5] posed by the 93.00-price level. Gold prices[6] are trading lower by about 0.5% and probing a big support zone[7] as US Dollar strengthening is likely keeping the precious metal under pressure.
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