03.07.202016:16 Forex Analysis & Reviews: Dollar plunges despite good US employment report

This morning, the greenback was in a narrow corridor, which is facing multidirectional pressure. So, on the one hand, total sales have become less due to the weekend in the United States for tomorrow's holiday. On the other hand, the number of people infected with coronavirus infection continues to grow rapidly. And finally, the positive influence comes from the good statistics, which was published the day before.

The index of the greenback in relation to a basket of six major currencies of the world showed a decrease of 0.1%, which moved this figure to 97.203.

The dollar has changed its position with respect to the euro where quotes remained at $1.1249 per euro. The pound sterling, on the other hand, strengthened a little by 0.1% and began to cost $1.2477 per pound. Japanese yen was also not marked by significant dynamics and maintained its position at 107.50 yen per dollar.

Meanwhile, aussie has not changed much in relation to the dollar, demonstrating stability, which is also good. In the morning, it was around $0.6929 per aussie. Although there is no growth, there is confirmed data on the restoration of the level of retail sales to the level that was recorded in May of this year.

Today, the kiwi was worth $ 0.6518 per Qiwi.

Strong statistics from China, which was released this morning, put pressure on the foreign exchange market. It particularly became the reason for the reduction of the greenback in relation to the Chinese yuan by 0.1%. Thus, the value of the dollar reached 7.0606 yuan.

If we take into account the fact that the labor market and the unemployment rate in the United States of America showed excellent dynamics, and activity in the manufacturing sector also turned out to be on top, it is worth noting that the world's first economy is rapidly recovering its lost positions. This means that the planned incentive policy, the basis of which was to receive new portions of banknotes issued by fiscal authorities, still gives certain results. This means that the extent of this strengthening is not yet clear.

However, one thing is clear today: the active printing of money, which the Federal Reserve launched, has become a fulcrum for the correlation between risky assets and the US national currency.

Until the US government stops the printing press and asset buybacks, investors will continue to show interest in the risk sector. Most analysts believe that the emerging trend is unlikely to change in the near future and will remain dominant for at least several quarters. Not so fast economic growth, in turn, will also make the greenback sag even further.

There are real concerns about the slowdown in economic recovery. Coronavirus infection continues to spread rapidly throughout the state, which can lead to the second wave of a pandemic and, as a result, a new restrictive policy. Recall that yesterday the United States recorded more than 52 new cases of COVID-19.