Dollar Rally After NFP Fades

Though lower currently, last Friday's unexpectedly upbeat labor data had earlier helped to push momentum into positive territory for the US Dollar. The US Labor Department reported on Friday that private sector jobs increased to 201,000 in August, slightly above the 191,000 predicted; July's figures were, however, revised down by 10,000. Average hourly earnings (year-over-year) also was better than expected at 2.9% in August, above the 2.7% forecast.

As reported at 11:03 am (JST) in Tokyo, the USD/JPY was trading at 110.949 Yen, down 0.03% and well off the session peak of 111.090 Yen. The EUR/USD was trading at $1.1567, down 0.03%; the pair has ranged from a trough of $1.15480 to a peak of $1.15642 in today's session.

Trump Trade Threat Raises Concerns

Fears of an escalation in the trade conflict between the US and China had initially helped to provide support for the greenback as a safe haven currency. President Trump threatened China with additional tariffs on nearly all goods imported into the US; that would amount to some $267 billion in Chinese goods. Analysts say that the latest threat hasn't yet been priced in by investors but the Trump administration's protectionist stance could now backfire.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.