Dollar inched up amid an unexpectedly lower U.S. employment data

Dollar inched up

The U.S. dollar was marginally up on as it moved away from its seven-month low versus its opposing currencies on Monday. It was pulled after the release of a lower-than-expected jobs data in the United States which immediately removed the expectations of investors on an interest rate hike led by the Federal Reserve.

Labor Department figures showed on Friday that the U.S. nonfarm payrolls added as much as 138,000 for the month of May. This suggests that the labor market was losing its momentum regardless of the jobless claims dropping for 16 years by 4.3 percent. Meanwhile a Reuters poll estimated an 185,000 increase.

Participant of the market are projecting the U.S. central bank to incite an interest rate hike for this June but several are also expecting a non-hawkish course for 2017’s second quarter. Brown Brothers Harriman’s currency strategist Masashi Murata said the positivity of the employment figures should influence the greenback as the U.S. Federal Reserves is still forecasted to lift interest rates this month. Masashi added that most participants of the market, however, believe that the rate hike would not last longer than September of December.

The index that measures the value of the greenback relative to its opposing currencies, the U.S. dollar index, was marginally higher by 0.1 percent to 96.789. On other currencies, the British pound dropped as it was pressured following the third terrorist attack in Britain which took the lives of seven people.

The attack took place after the election in Unite Kingdom on Thursday as polls are suggesting the lead of Prime Minister Theresa May over her rival Labour Party decreased.

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