US Dollar Ends Week Mixed as NFP Do Not Give Edge

The US dollar has ended the trading week mixed. It rose against the euro, the Great Britain pound, the Swiss franc, and the Canadian dollar. At the same time, the greenback fell versus the Japanese yen, the Australian dollar, and the New Zealand dollar.
Non-farm payrolls should have been an important factor for the US currency. Yet they failed to give the dollar an edge even though employment growth was very robust and exceeded forecasts by a wide margin. The problem was that other parts of the employment report were not great and failed to meet expectations. This reinforced the view that the Federal Reserve is not going to resume monetary tightening this year.
Another problem for the greenback were the Fed minutes. They showed that US policy makers are willing to wait for economic data to improve before embarking on tightening, and what perhaps even more important — they wanted to see the impact of the Brexit vote on the economy.
EUR/USD was down from 1.1136 to 1.1051 over the week, though the drop was not enough to erase the previous week’s gains. GBP/USD sank from 1.3243 to 1.2945, touching a new multi-year low of 1.2810 during the week. USD/JPY declined from 102.59 to 100.45 — the lowest weekly close since November 2013.

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