The US job market continues looking good: a drop to 232K this week, one of the lowest levels in recent months. The Philly Fed Manufacturing Index also provided a beat: a score of 48.8 points, around double the early expectations.
The US dollar is bouncing on the news, but politics play a bigger role in market movements.
US jobless claims were expected to tick up from 236K to 240K in the weekly barometer of the labor market. The Philly Fed Manufacturing Index for May carried expectations for a drop from 22 to 19.5 points.
The US dollar is back on the back foot. New revelations about the Trump team’s relations with Russia weighed on the greenback. Earlier, the announcement about a special counsel helped calm markets for a while.
USD/JPY best reflects the ebb and flow regarding the mood. In addition to the dollar moving with the political mood, the yen is a safe haven currency.
Get the 5 most predictable currency pairs