US Dollar ends week on a decline after disappointing NFP report

The US Dollar closed out the week on a downward trend after a disappointing Non-Farm Payrolls (NFP) report was released on Friday. The NFP report, which is a key indicator of the health of the US economy, showed that only 210,000 jobs were added in November, falling short of the expected 573,000 jobs.

This unexpected slowdown in job growth has raised concerns about the strength of the US economy and has led to a decline in the value of the US Dollar. The Dollar Index, which measures the value of the US Dollar against a basket of other major currencies, fell by 0.5% on Friday, marking its biggest one-day decline in over a month.

The disappointing NFP report has also raised doubts about the Federal Reserve’s plans to start tapering its bond-buying program in the coming months. The Fed had previously indicated that it would begin tapering its asset purchases in response to strong job growth and rising inflation, but the weak NFP report has cast doubt on whether the economy is strong enough to support this move.

In addition to the NFP report, other factors have also contributed to the decline in the US Dollar. The ongoing uncertainty surrounding the Omicron variant of COVID-19 has led to increased risk aversion among investors, causing them to move away from riskier assets like the US Dollar. In addition, concerns about rising inflation and the potential for interest rate hikes by the Fed have also weighed on the Dollar.

Looking ahead, analysts are closely watching for any further signs of weakness in the US economy that could impact the value of the Dollar. The upcoming Federal Reserve meeting later this month will be closely watched for any clues about the central bank’s plans for monetary policy in light of the disappointing NFP report.

Overall, the US Dollar ended the week on a decline after a disappointing NFP report raised concerns about the strength of the US economy. Investors will be closely monitoring economic data and central bank announcements in the coming weeks for further insights into the future direction of the Dollar.

• Source Link: https://zephyrnet.com/us-dollar-closes-a-losing-week-following-soft-nfp/