Market news
06.12.2024, 18:10

US Dollar sees some gains after NFP and sentiment data

  • DXY trended higher toward 106.00 on Friday.
  • November’s NFP report showed a large beat on job creation.
  • Sentiment data from December came in strong.

The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, gained toward 106.00 on Friday, driven by several key movers. The US Dollar remained flat after the release of Nonfarm Payrolls (NFP) data, while markets anticipated a potential December rate cut by the Federal Reserve (Fed).  

The DXY found support at 105.50 and advanced toward 106.00 amidst this news. As a result of anticipation of a rate cut, a dovish stance from the Fed would, in general, cause a decline in the DXY. However, the market is leading to strength in the US Dollar despite this news.

Daily digest market movers: US Dollar sees some gains after NFP data

  • The US Dollar Index advanced toward 106.00 as several key factors influenced its movement.
  • The NFP surged by a noteworthy 227,000 in November, far exceeding market expectations of 200,000.
  • The Unemployment Rate experienced a slight uptick to 4.2% in November.
  • Monthly Average Hourly Earnings posted a steady 0.4% gain, meeting the previous month's reading.
  • Consumer Sentiment climbed to 74 in December, surpassing market projections.
  • The University of Michigan's 5-year Inflation Expectations rate declined to 3.1%.


DXY technical outlook: Bulls fights back, holds 106.00 level

The DXY halted its descent and gained ground today, indicating resilience. This move comes despite profit-taking activity. The index is currently aiming to recover its 20-day Simple Moving Average (SMA), and as long as it remains below there, it could exacerbate its short-term difficulties.

On the other hand, the bullish trend for the DXY remains robust, with resistance points located at 106.50 and 107.00. Support is anticipated within 105.50 to 106.00. 

 

US Dollar FAQs

The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from the Bank for International Settlements. Following the Second World War, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold until the Bretton Woods Agreement in 1971, when the Gold Standard went away.

 

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location