On Friday, the U.S. dollar Index was about 0.2% higher after the Labor Department revealed healthy job creation in May, reports John Detrixhe for Bloomberg. [Dollar ETF in Focus as Williams Says Fed May Taper This Summer]
“The initial reaction was a stronger dollar, and I think that means the market saw this as a bit stronger than they had been expecting,” Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities, said in the article. “The number is not strong enough to guarantee that tapering is coming sooner, and it’s not weak enough to push tapering expectations even further out.”
“Expectations of tapering is a positive for the U.S. dollar as it means a slowing in the expansion of the Fed’s balance sheet,” Eric Viloria, a senior currency strategist at Gain Capital Group LLC, said in the article.
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Max Chen contributed to this article.