We recently noticed that some third-party companies and individuals impersonated the TOPONE Markets brand and illegally misappropriated our trademarks.

We Hereby Reiterate Our Statement:

  • TOPONE Markets does not provide discretionary account operation trading services, nor does it cooperate with other third-party vendors and/ or agents to provide such services.
  • TOPONE Markets staff will not promise to our customer the definite profit, please do not trust any kind of the profit promise or profit related picture, such as screenshot/ chat history, etc, all investment profit can be only viewed on our official website and application.
  • TOPONE Markets is a professional online trading platform with low spreads and zero handling fees. Be wary of any behavior that asks you for any fees directly and privately. TOPONE Markets does not charge a fee at any stage of its trading process or other fee.

If you have any questions or concerns, please feel free to reach us by clicking the "Online Customer Support" or send an email to our customer care team cs@top1markets.com. We will answer your questions and assist you promptly.

Understood
We use cookies to learn more about how you use our website and what we can improve. Continue to use our website by clicking "Accept". Details
Market News US Dollar Index: DXY extends post-NFP gains beyond 104.0 prior to US ISM Services PMI

US Dollar Index: DXY extends post-NFP gains beyond 104.0 prior to US ISM Services PMI

US Dollar Index gains bids to reestablish intraday high, maintaining Friday's recovery despite experiencing the first weekly decline in four weeks. Positive U.S. nonfarm payrolls and optimism regarding a debt-ceiling agreement enable the U.S. dollar to retain its strength. Fresh concerns regarding US-China relations and pre-data anxiety strengthen the DXY advance.Absence of significant catalysts and pre-Fed blackout encourage dollar buyers despite waning Fed hawkishness and cautious market optimism.

TOP1 Markets Analyst
2023-06-05
7626

 US Dollar Index.png

 

Despite a lethargic start to the week, the US Dollar Index (DXY) maintains yesterday's recovery gains. In spite of this, the DXY reestablishes its intraday high near 104.15 while extending the post-NFP rebound in the absence of significant data/events and amid mixed catalysts. In doing so, the greenback's index versus the six major currencies reflects the market's cautious optimism ahead of the US ISM Services PMI and Factory Orders, as well as the fresh concerns about US-China relations.

 

DXY rebounded from a weekly low after US Nonfarm Payrolls (NFP) rekindled hawkish Fed worries. In spite of this, the headline Nonfarm Payrolls (NFP) in the US employment report for May increased by 339K, compared to 190K expected and 294K previously (revised). Notably, the Unemployment Rate increased to 3.7% from 3.4% previously, exceeding market expectations of 3.5%. Noteworthy is the fact that Average Hourly Earnings decreased while the Labor Force Participation Rate remained unchanged.

 

Elsewhere, the Shangri-la Dialogue in Singapore rekindled geopolitical concerns surrounding the United States and China despite the absence of a meeting between the policymakers of both countries, as well as an incident indicating a rise in Sino-American naval war fears in the Taiwan Strait. In addition, news from the Russian Defense Ministry indicating large-scale military operations by Ukraine further dampens sentiment and supports the US Dollar.

 

In contrast, US President Joe Biden signed the debt-ceiling measure, averting a 'catastrophic' default. Also negative for the DXY were concerns that the main central banks may slow their rate hikes. Moreover, despite Friday's positive price movement, the global rating agencies continue to be cautious about the US financial market's credibility and exert pressure on the US Dollar. Reuters reported on Friday that Fitch Ratings would maintain a negative outlook on the United States' AAA credit rating despite the agreement that will enable the government to meet its obligations.

 

Wall Street closed higher, reflecting the atmosphere, and US Treasury bond yields recorded their first weekly decline in four weeks. Notable is the fact that S&P500 Futures have posted modest losses amid conflicting sentiment.

 

US Factory Orders for April and ISM Services PMI for May will be crucial for intraday direction as the latest US employment report renews the Federal Reserve's (Fed's) hawkish bias and keeps the US Dollar on the radar of buyers.

Previous
Next

Bonus rebate to help investors grow in the trading world!

Need Assistance?

7×24 H

Download the APP for Free