The U.S. dollar bounced back on Monday’s opening bell reaching the 105.30 mark. It spiked by nearly 0.40 points in the day’s trade surging by 0.36%. The latest jobs data pushed the U.S. dollar up in the charts making it enter greener pastures in the indices. It outperformed leading Asian currencies on Monday despite being on the back foot for a week.
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The fresh jobs data shows that U.S. employers added 272,000 jobs in the market in May 2024 last month. That’s beyond the expected results of 180,000. Therefore, the report beat all expectations and created 92,000 jobs, which is above all projections.
The move aids in consumer spending and highlights that the U.S. economy could move in the right direction. The more jobs that are created in the market, the better the U.S. economy will fare. The development gives the U.S. dollar strength in the currency market and makes it compete with other local currencies.
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Jobs Data Strengthens the U.S. Dollar
While the latest jobs data strengthened the U.S. dollar, it gave gold prices a beating. As the U.S. dollar shot up in price, gold dipped below the $2,300 mark in the indices. The XAU/USD index, which measures the performance of gold shows its price trading at $2,290 on Monday. It’s down by nearly 3 points and dipped 0.10% since the opening bell.
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A weaker gold only pushes the U.S. dollar up in the indices as investors take an entry position into the currency. In addition, currency investors have been accumulating the U.S. dollar at every dip in 2024 cementing its prospects for a bounce back. Surprisingly, Asian hedge funds are among the top buyers of the U.S. dollar this year in 2024. Therefore, the dollar has more chances of breaching its yearly high of 107 and moving further in the charts.
