Dollar Starts Week on the Decline

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The dollar started the week trading lower even though the non-farm payroll report released on Friday was construed as mostly positive, showing the creation of 196,000 jobs in March and beating expectations. Despite this positive news, analysts are concerned that there remain problems with the U.S. economy. For starters, Friday’s report indicated that wage growth lost momentum despite the increase in jobs. Treasury yields also declined and pressured the dollar.

The dollar index was trading down 0.08 percent as of 3:44 p.m. HK/SIN on Monday, with the steepest losses suffered against the yen, where the greenback was trading down 0.14 percent to 111.31.

U.S.-Sino trade talks concluded last week without a finalized agreement, lowering confidence in the dollar. Talks are expected to resume next week.

Stock Market Movements

Global stock markets were mostly lower on Monday afternoon, though they hovered near seven-month highs. Anticipation of what is expected to be a difficult earning season in the United States pressured markets on Monday, though the S&P 500 and the NASDAQ were able to eke out gains. The Dow Jones Industrial Average closed down 0.32 percent on Monday. According to reports by CNBC, analysts expect Q1 2019 to show the first quarter of contracting corporate earnings since 2016. With its higher close on Monday the S&P 500 capped its eighth consecutive day of gains, its longest winning streak since October 2017.

Asian markets were trading mostly higher on Tuesday, with only the Shanghai Composite trading in the red, down 0.16 percent shortly before close. Japan’s Nikkei 225 was up 0.19 percent, Hong Kong’s Hang Seng Index was up 0.15 percent, and South Korea’s Kospi was up 0.13 percent.

Sara Patterson has a Master’s Degree in political science and enjoys analyzing both current events and the international markets to get a fuller perspective of the currency market. Before turning to financial writing, she taught English writing skills to high-school age students. Sara’s work has been published on various financial and Forex blogs.