From Gina Lee
Investing.com – The dollar was up in Asia on Monday morning. However, a weaker than expected US employment report for May put the greenback under slight pressure at the beginning of the week.
The dollar, which tracks the greenback against a basket of other currencies, rose 0.06% to 90.185 by 10:54 p.m. ET (2:54 p.m. GMT).
The pair rose 0.08% to 109.57.
The pair fell 0.03% to 0.7735 and the pair lost 0.11% to 0.7023.
The pair was up 0.11% to 6.4017. The yuan made a comeback, trading above 6.4 per dollar again, and most recently bought 6.3880 offshore. that is due to the fundamental forces behind the yuan's recent rapid rise later in the day.
The pair fell 0.09% to 1.4142.
rose 559,000 in May, according to Friday's US employment report, down from 650,000 in Investing.com's forecasts but above April 278,000.
May was 5.8% better than expected, and the data helped ease concerns about an earlier than expected Fed decline in assets for the time being.
"Friday May's slightly weaker-than-expected US employment numbers set the tone for the weeks ahead … this gives the (Fed) an excuse to say that significant progress has not been made in meeting its targets, and that Reduction to postpone debate a little longer, "ING Bank analysts said in a note.
Worries had led to a slight spike in short bets against the dollar over the past week, despite Fed officials claiming the COVID-19 economic recovery is a long way off and they expected to maintain their current cautious policies.
Investors' focus now is on the numbers due later in the week. The numbers could influence the Fed's next move as it further estimates current price pressures. A lower than expected value could mean further declines for the US currency.
Investors are also waiting for the European Central Bank's (ECB )’s latest monetary policy decision, due to be announced Thursday, with the Fed's own June meeting scheduled for June 15-16.
The focus will clearly be on whether the ECB will start tapering its bond purchase program.
"Assuming dollar bears can pass the US CPI Super Thursday and the ECB's monetary policy decision unscathed, the dollar could be gently offered to the major event risk of the month, which is the FOMC decision," the ING note added.
"The ECB is in a twister-22 … the outlook is gradually improving and financial conditions are also largely conducive to recovery," Rabobank analysts said in their own note.
However, this was partly due to the determined reluctance of several members to set the stage for a debate within the session that could slow the pace of bond purchases a little, the note added.
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