Dollar sinks following weak employment data

Dollar sinks following weak employment data

Missed expectations on heavily anticipated employment data sent the dollar into a tumble versus all peers. Unemployment rate edged higher to 6.1% and payrolls increased by 266K – well below the 1M expected. The miss sent treasury yields lower and translated to a weaker dollar.
"When things change inside you, things change around you." 
Unknown
  • FX Rates
    May 7, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar slid to two-month lows following missed payroll estimates and unemployment rising to 6.1% versus 5.8% forecasted. The miss – and revised lower numbers for March put downward pressure on the US currency.

    GBP
    The pound gained ground on USD weakness and the UK awaits results of the Scottish parliamentary elections.
    EUR
    The euro strengthened versus the dollar as US payrolls disappoint. The common currency has gained 0.53% and is approaching monthly highs.
    CAD
    Initial soft employment data out of Canada weakened the Canadian dollar until a massive miss on US employment data and a weakened dollar reversed the price action on the pair.
    ASIA/PACIFIC

    USD/JPY dropped below 109 following US employment data. Despite the momentum on dollar weakness, the yen is among the worst performing currencies this week as Japan seeks to extend a state of emergency over Tokyo till the end of May.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.

Kathryn Garvey
WRITTEN BY
Kathryn Garvey

Insights from SVB Industry Experts

 
SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Dollar gains on “triple-witching”

 

Dollar takes back yesterday’s losses

 

Daily FX Update: Safe-haven yen and Swissie gain as dollar loses

 

Daily FX Update: Dollar sinks on weak inflation

 

Daily FX Update: Dollar gains ahead of tomorrow’s CPI data

 

Daily FX Update: Dollar slides to end week, equities stronger