[USDX] Non-Farm and Hourly Earnings 2019 0504

Dollar Index, four-hour chart, source:FXStreet.com

Good economic scores in USA make investors support strong dollar. The advanced GDP released a week, and non-farm employment change and unemployment rate show good economy situation in the United States. Fed Chair, Jerome Powell spoke the inflation was under the goal, 2.0 percent and the benchmark interest rate wouldn't be risen.

These economy events led U.S. dollar up, and other currencies such as euro, pound and Korea won down.

Non-Farm employment change in United States, April which was released on Friday, increased 263 thousands and unemployment rate fell to 3.6 percent. They were forecasted 181 thousands and 3.8 percent respectively. The unemployment rate recorded historic low in fifty years.

These record should lead strong dollar as previous score of GDP, unchanged benchmark rate did. But U.S. dollar on Friday retreated unlike predicted. It was because market participants focused on Average Hourly Earnings more than non-farm and unemployment, Yonhap Infomax reported. The average hourly earnings increased 0.2 percent but it was predicted 0.3 percent. The lower record than expected index hinted the inflation pressure wasn't strong and Fed would not raise the benchmark interest rate. Traders thought that and it restrained the rise of greenback.

And Dollar Index, USDX, dollar's value compared to major six currencies scored 97.46 in this week.

In technical view, USDX seems to change its trend to downward in four-hour chart. It made the peak of 98.33 when the advanced GDP was released 3.2 percent in annual rate, and it lowered the second peak in four-hour chart.

USDX is on the upward trend line yet, but there is possibility of breaking the trend. Because there are investors and traders who guess dollar long positions are enough, and they focused on hourly earnings than more powerful non-farm employment change.

As dollar rises, investors who think dollar has risen enough increase, too.






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