The Dollar Steadies After the US NFP Non-Farm Payroll Report

The US dollar has stabilized on Monday amid low liquidity conditions. It was supported by the NFP non-farm payroll report of the US. On Friday, the currency gained a ground strongly. The positive data on the US unemployment rate and increased wages boosted it. However, the dollar value decreased later on the day and returned gains.

The Asian stock markets have been moving mostly in a mixed manner. Wall Street indices closed low, posting their biggest declines in months. Besides, the US economy has been stagnate. It has created optimism about the increase in the Chinese trade surplus and the data of export. 

Semiconductor Manufacturing International Corporation shares have also pulled Chinese stocks. SMIC is a partially state-owned, largest Chinese company. According to news, the United States may impose restrictions on it, escalating the Sino-US tech war.

Over the weekend, concerns about the no-deal Brexit intensified. As a result, the British pound lost its value. The GBP/USD dropped towards 1.3200. Boris Johnson, the UK prime minister, has put a request to negotiators. He said that the UK and EU must agree on a post-Brexit deal by October 15. Otherwise, the UK would walk away for good. 

The country proposes legislation that will overthrow critical parts of the Brexit withdrawal agreement. Besides, the EU stands steady on its claim over fishing rights, state aid, and immigration.

Investors are still cautious since coronavirus cases are rising in Europe. Moreover, the European central bank has not made the monetary policy decision yet. In such a scenario, the EUR/USD pair moves defensively below 1.1850. 

Now German industrial production and the Eurozone Sentix’s investor confidence gauge remain at the center of attention. 

The USD/JPY pair keeps stable above 106.00. Meanwhile, the rebound in the AUD/USD has remained limited under 0.7300 despite positive Chinese commercial data.

The USD/CAD advanced to 1.3100, backed by the falling prices of the WTI crude oil.