Citi on Non-Farm Payrolls: A Favorable Environment for USD Appreciation

Odaily Planet Daily News U.S. employment data came in stronger than expected, boosting the dollar, while progress in U.S.-Iran peace talks stalled. The Dollar Index is poised for its largest one-day gain since April 8 on Friday; it has risen 0.6% this week, on track for its biggest weekly gain in three months. Despite the challenges faced by other global regions due to high energy prices stemming from Middle East conflicts, U.S. employment growth in May exceeded market expectations, and the unemployment rate remained stable. These employment figures have strengthened market expectations of a Fed interest rate hike. "This creates a favorable environment for the dollar to rise," said Noah Buffam, a strategist at Citi Capital Markets. "The data shows that American exceptionalism has passed the test, achieving an economic rebound while inflation remains above target." (Jinshi)