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DXY INDEX PIVOTS LOWER ON MIXED NONFARM PAYROLLS DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT DAT AUS In response to a mixed NFP report, dollar bears are pushing the greenback down. As the unemployment rate rises to 5.9%, the broader DXY Index loses its intraday gains. With 850K jobs added in June, the headline net change in nonfarm payrolls exceeded expectations. For up-to-date market news and commentary, bookmark and return to our Real Time News page. As markets assess the latest batch of NFPs, the price of the US dollar is under pressure. In early reaction to what appears to be a mixed bag jobs report, the broader DXY Index shifted -0.2 percent down. Following the data, the EUR/USD and GBP/USD price action surged 26 and 41 pips, respectively, while the USD/CAD price action shifted 30 pips down. In June, nonfarm payrolls climbed by 850,000, well exceeding the consensus expectation of 720,000 new jobs. Surprisingly, the unemployment rate increased from 5.8 percent to 5.9 percent, disappointing traders who had expected a reduction to 5.6 percent. The labor force participation rate remained stable at 61.6 percent, while average hourly earnings increased by 3.6 percent year on year. DXY – US DOLLAR INDEX PRICE CHART: TIME FRAME OF 15 MINUTES (01 JUL TO 02 JUL 2021) TradingView was used to construct this chart by @RichDvorakFX. In our NFP preview, we mentioned that a mixed bag scenario could disappoint both US Dollar bulls and Fed hawks. That appears to be the case. To be fair, there is an intriguing comment concerning the unemployment rate in the NFP report’s disclosures. “Among the unemployed, the number of job leavers – that is, unemployed persons who quit or voluntarily left their prior work and began looking for new employment – grew by 164,000,” according to the Bureau of Labor Statistics. This, together with rising wage inflation, indicates that underlying labor market demand is high. Nonetheless, the Federal Reserve may take a cautious and ‘half glass empty’ approach to NFPs, as doing so will likely give the central bank more time to postpone the start of reducing asset purchases. As a result, recent US Dollar strength may continue to unwind. — Rich Dvorak, a DailyFX.com analyst, wrote this article. For real-time market updates, follow @RichDvorakFX on Twitter./nRead More

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