Any hopes that the Dollar could continue its rebound with an encouraging US jobs report, appears to have been thrown out the window, following a "hat-trick" of losses in the recently released jobs report for August. The number of jobs created in August, earnings and the unemployment rate, all fell short of expectations. The negative news doesn’t conclude there; the figures for number of jobs created in both June and July, were also revised lower.
The headline figures coming out the Non-Farm Payroll report do not look encouraging for those investors who were looking to purchase the Dollar, at what could be argued as oversold levels – after the Dollar Index touched its lowest level since January 2015 earlier this week. I still feel that in terms of price action, the Dollar is oversold. However the employment sector has been one of the star performers for the US economy over the past two years and this news does not look encouraging for the jobs sector.
It’s possible that this report could just be a one-off, but the headline news may encourage sellers re-entering the market to short the Dollar.
