American dollar with losses because investors digest the number of labor market

The American dollar index moves towards 99.50 after rejection to 100.00.
Non -parish paying overcame the forecast, but corrections and context weaken the rush.
Chinese tariff headers escalate the pressure to the green place.

The American dollar index (DXY), which measures the value of the American dollar (USD) in relation to the currency basket, withdraws on Friday after a low traffic above the level of 100.00. Despite the stronger than the expected data of the United States (USA), it is green under the pressure of the interpretation of the dove and emerging commercial headlines with China.

Daily Digest Market Movers: Not what it was counting on

Bureau of Labor Statistics announced that non -parish wages increased by 177,000 in April, exceeding 130,000 consensus, but lower than changed 185,000 in March.
The unemployment rate remained at the level of 4.2%, while the working force share rate increased slightly to 62.6% from 62.5% in March.
The average hour of earnings, a key wage inflation rate, increased by 3.8% year -on -year, unchanged from the previous month.
Down the amendments in February and March reduced the total profit of jobs by 58,000, diluting the additional surprise from April.
China is reportedly open to tariff negotiations with the Trump administration, which exerted pressure on the American dollar, because traders predicted progress.
The United States has signed a diminutive mineral agreement with Ukraine, although it has a circumscribed economic scope and has no defense obligations.
Despite the NFP rhythm, market participants perceive April print as the last potentially powerful working force report before softness appears in June.
The federal reserve should continue to reduce the rates in June, and traders value over 100 base points soothing until the end of the year.
At the beginning of this week, the ADP employment report showed that wages in the private sector increased by only 62,000, the weakest since July 2024.
GDP for Q1 showed 0.3% annual contraction, powered by growing imports and weakening of domestic demand against tariffs.

Technical analysis

DXY flashes the general bear signal, currently trading around 99.53 with a immense decrease in the day. The price changes in the range from 99.40 to 100.33. The relative force indicator (RSI) is 40.14 and is neutral, while the discrepancy with the movable average convergence (MacD) generates a delicate buy signal, which suggests discrepancy. Both stochastic %K at 59.25 and the final oscillator at 42.86 also indicate a neutral shoot. 20-day, 100-day and 200-day basic movable medium (SMA) at 100.27, 105.45 and 104.42, respectively, together with 10-day and 30-day medium-medium (EMA) medium (EMA) at 99.70 and 101.15, they are producing bear signals. The support is at 99.41, and the resistance levels are set to 99.70, 99.78 and 100.27.

FAQ in American dollars

The American 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 in circulation with local notes. It is most often a commercial currency in the world, which is over 88% of all global currency turnover, i.e. an average of $ 6.6 trillion of transactions per day, according to the data from 2022. After the Second World War, USD took over from the British pound as the reserve currency of the world. For most of its history, the American dollar was supported by gold, up to the Bretton Woods agreement in 1971, when the golden standard disappeared.

The most critical single factor affecting the value of the American dollar is the monetary policy, which is shaped by the Federal Reserve (FED). The Fed has two seats: achieving price stability (control inflation) and supporting full employment. Its main tool to achieve these two goals is to adjust interest rates. When the prices rise too quickly and inflation is above 2% of the Fed target, the FED will escalate the rates, which helps USD values. When inflation drops below 2% or the unemployment rate is too high, the Fed may reduce interest rates that are weighing in the green area.

In extreme situations, the Federal Reserve can also print more dollars and introduce quantitative alleviation (QE). QE is a process in which the Fed significantly increases the credit flow in the detained financial system. It is a non -standard policy measure used in the event of a loan parched, because the banks will not borrow (for fear of the contractor). This is the last last, when just lowering interest rates is unlikely to achieve the necessary result. The weapon of choosing the Fed was a FED weapon to combat the credit crisis, which took place during the great financial crisis in 2008. This includes FED printing more dollars and using them to buy US government bonds mainly from financial institutions. QE usually leads to a weaker American dollar.

Quantitative twist (QT) is the opposite process in which the federal reserve stops buying bonds from financial institutions and will not reinvest from the bonds that it has in modern purchases. This is usually positive for the American dollar.