US Dollar Gains Ground, But Earlier Gains Have Been Pared

US dollar is mostly higher today, but the currency’s earlier gains have been pared a bit following the latest US jobs numbers. Since the numbers matched expectations, many feel that the Federal Reserve will stay on course, and not speed up its efforts to end monetary policy easing.

The latest monthly jobs report, for May, shows that the US economy added 217,000 jobs and that the unemployment rate dropped slightly to 6.3 per cent. However, this news isn’t sending the US dollar a lot higher against its major counterparts, although the greenback is logging gains. Instead, the US dollar is paring some of its earlier advancements.
May’s jobs report is in line with expectations, and that means that few Forex traders and analysts expect the Federal Reserve to reduce its asset purchase program anytime soon, and it will likely still be some time before interest rates rise. This is likely to keep the greenback in check, at least for a little while.
With the latest policy announcement from the ECB, it looks like there will be some policy divergence that will result in euro weakness, and that should help the dollar going forward.
At 14:28 GMT EUR/USD is down to 1.3632 from the open at 1.3660. GBP/USD is down to 1.6795 from the open at 1.6820. USD/JPY is up to 102.5600 from the open at 102.4090.

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