07.06.202111:32 Forex Analysis & Reviews: Uncertain outlook for US dollar: US statistics and dim economic prospects

In the early trading session on Monday, the US dollar demonstrates fluctuations against major world currencies. Market participants assess the prospects for economic recovery against the backdrop of statistics from the United States released on Friday.

Thus, at the time of preparing this material, the euro increased to 1.2166 from 1.2165 against the US dollar. The dollar/yen pair fell to 109.46 from the previous closing level of 109.49. At the same time, the US dollar index measuring the value of the dollar against a basket of six world currencies advanced by 0.01% to 90.14.

At the beginning of the trading week, there are mixed and volatile dynamics in the US foreign exchange market. Market participants are concerned about dim prospects for economic recovery and tightening of monetary policy amid US labor market statistics.

Thus, according to the US Labor Department, unemployment among the American population fell to 5.8% in the past month from 6.1% in April. The announced figures significantly exceeded analysts' forecasts. At the same time, non-farm payrolls in the United States failed to meet expectations and increased by 559,000.

As for the preliminary forecasts, analysts announced a decrease in the May unemployment rate to 5.9% and an increase in non-farm payrolls by 650,000.

In addition, the US Labor Department reported that in the previous month, hourly earnings in the country had increased by 0.5% on a monthly basis to $30.33 and by 2% on an annual basis.

Notably, in April 2020, the US unemployment rate soared by 14.8% from 4.4% in March amid the COVID-19 pandemic. The indicator reached the highest level since 1940, but already in May it began to gradually decline.