On Friday the US labor data was published, directly affecting the performance of the US currency in the Forex market. Well, the dollar falls again in its operations due to negative unemployment figures.
The performance of the US currency has always been affected by multiple factors emanating from the US government. And in this case, we can see how the dollar weakens again due to the tense economic situation in the US.
The dollar falls again
Traders and investors focused their operations on other currencies in the Forex market. This after a Labor Department report announced that job growth in the United States slowed further in August. Threatening the recovery of the economy from the crisis caused by the COVID-19 pandemic.
This is no stranger to general knowledge. Well, the United States has struggled in the last 3 months to implement measures that can recover its affected economy in record time.
However, these measures appear to be too drastic for the market. Causing doubts and concerns about the future of the dollar to increase among Forex Market operators.
The unemployment rate finally dropped to single digits, more precisely to 8.4%, although the creation of new jobs was not as expected. To this is added that programs to help companies pay wages began to expire, this according to a Reuters report.
It is important to note that the fall of the dollar earlier in the week stimulated the euro above the key level of $ 1.20. Happening for the first time since 2018.
But those gains quickly fizzled out. This after the chief economist of the European Central Bank, Philip Lane, said that the EURUSD exchange rate did affect the future economic policies of the European bloc. Suggesting, furthermore, that the rise in the euro had been too fast and strong for the ECB’s taste.
The dollar to date
At the time of writing the dollar index is trading at 92.80. It should be noted that it reached its lowest price on the day of 0.10% at 92.75.
Analysts believe that this performance of the dollar will continue at this shaky pace. Unless the American government takes action that actually solves the American economic crisis.
Do you think the dollar will be able to recover its past performance? Let us know what you think in the comment box.