Dollar takes a hike for third time


    The global dominated currency was TRADING on bear track since when a report on private-sector employment came in at its weakest level in three years. However, the currency soon compensated its pace.

    Following San Francisco’s Fed President *John Williams hint worth twice a hiking interest rate this year, the U.S. dollar marked its power once more by rising against its major rival currencies for the third day.

    (*He is not a voting member of the Fed’s rate-setting committee this year)

    Exclusive data obtained from Market Watcher cited (for reader’s concern):

    | The ICE U.S. dollar index (DXY) gained nearly 0.7% to 93.7900 – giving it another boost for second straight week |

    | The Euro (EURUSD) experienced a loss by turning bearish from $1.1496 to $1.1404 in New York. The dollar USDJPY gained to ¥107.27 from ¥106.95 on Wednesday |

    | Pound (GBPUSD) turned bearish to $1.4482 later today, in comparison to yesterday’s estimate of $1.4499 |

    UPDATE: Sterling fell after the Markit/CIPS purchasing managers index for the U.K. services industry showed activity droop to a 38-month low in April, bearish from 53.7 (March) to 52.3 (this time) – source: Market Watch

    The number of Americans opting unemployment benefits turned to bearish figures inspite ofan abrupt rose in government facility application.

    INSIGHT: The number of Americans collecting unemployment benefits fell in late April to a nearly 16-year low, which analysts said was supportive of the dollar because it increased the chances of a Fed interest-rate hike in June (source: Market Watch).

    “The underlying trend in the labor market is still showing signs of improvement. If payrolls tomorrow comes in around 200,000, then I think a hike in June cannot be excluded,” Rabobank’s emerging-markets currency strategist, Piotr Matys

    “It is becoming increasingly clear that the elevated concerns over the immeasurable impact of a Brexit have taken their toll across the board with U.K. manufacturing, retail sales, and average earnings all entering a slippery decline.” – FXTM research analyst, Lukman Otunuga