The greenback rebounded strongly at America’s trading session, heading for its biggest monthly jump since November 2016 by an impressive U.S private payrolls report and a hawkish shift by the U.S. Federal Reserve’s rates outlook at a meeting held early in June.
DXY bulls are also increasingly gathering momentum amid growing concerns over the spread of the Delta virus variant.
The greenback has already posted gains of about 3% in June against a basket of major currencies that include the Euro, Japanese yen, Pound sterling, Canadian dollar, Swedish krona, and Swiss franc partly in the wake of a hawkish U.S Federal Reserve Bank
All eyes are now on Friday’s U.S. Nonfarm Payrolls report for an affirmation of a shift in America’s monetary policy.
Recent macros show U.S. private payrolls surged by more than expected this month by 692,000 jobs.
Though DXY bulls gains got capped around the 92.433 index points on the account that U.S private farm payrolls for the month of May was earlier revised lower to reveal 886,000 jobs added instead of the previously reported 978,000.
Still, some market pundits had earlier predicted private payrolls would rise by 600,000 jobs, further giving DXY bulls enough gas to break temporarily above 92.4 index points.
Consequently, present chart patterns show the greenback continues to consolidate its post-FOMC gains, with the rampaging COVID-19 mutants providing some safe-haven support.
DXY bulls are also riding the price wagon high after recent fundamentals showed U.S. consumer confidence increased this month to its highest level since the pandemic started over a year ago. Such narrative lifted market sentiments on the safe haven currency positively amid expectations for stronger economic growth in the mid-term.
Though some technical indicators pre-empt currency markets might be quite choppy in the coming days amid this month and quarter-end rebalancing flows.
For a look at all of today’s economic events, check out our economic calendar.