Wednesday, June 3, 2020
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Dollar is buoyed by record high jobs openings

US Job Openings - Econ Alerts

The dollar moved higher against all other major currencies today (although it was very short lived) after another good US jobs report, this time it came from the JOLTS (Job Openings and Labour Turnover) report this adds optimism to the strength of the U.S. economy and job market.

The dollar index rose after the U.S. Labor Department reported the number of job openings (excluding the farming industry) settled at a record-high 6.163 million in June. This is an increase from the previous month which had 5.702 million jobs openings, which was revised from the original reporting of 5.666 million.

The general expectation of the number of job openings to was to increase to 5.75 million job openings. Although the release of the JOLTS report is not usually an important key data point for investors, it does come after last Friday’s strong nonfarm payrolls data, which fueled expectations the US Federal Reserve will stick to the plan for a third interest rate hike later this year (perhaps in December).

Investors are now looking towards U.S. inflation reports later in this week for indications of whether the recovery in the dollar is sustainable in the longer term.

The tensions between the US and North Korea has taken another turn. The UN voted to impose another set of strict sanctions on North Korea due to their increased missile testing. North Korea has stated their nuclear weapons program is self-defensive and even with the new sanctions imposed on them, they will still continue forward with their program. North Korea also promised to a “thousand-fold” revenge on the US for imposing these new sanctions. Some Investors may see this as further empty rhetorics and threats from both sides, and this is why there doesn’t seem to be a significant flight to safe haven assets such as gold and the Japanese Yen.

US JOLTS job openings - Econ Alerts


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