The US Dollar lost 0,62% against the Singapore Dollar on Friday, the biggest one-day fall since March 2020, due to the much lower-than-expected job creation in the US in April. On Friday we also had the unemployment rate for the US. The market’s forecast was that the unemployment rate would fall from 6% (in March) to 5.8% (in April). Instead, the Unemployment rate rose to 6.1% in April. This is the first time the unemployment rate rises since May 2020. Those bad news for the US economy pushed the dollar down, which closed at 1.3245. This week the market will likely retest the 2021 lowest price, at 1,3165, where the dollar could gain some temporary strength.
The US Dollar lost ground against the Ringgit last Friday because a much lower-than-expected Non-Farm Payroll number for the US economy, which measures the job creation during the previous month. The market’s forecast was that the United States created 990 thousand new jobs in April, but the actual result was the creation of only 266 thousand new jobs during that period. This huge difference pushed the Dollar to the downside, and the closing price on Friday was 4.1100.
From a technical point of view, this week the market can drop to the 4,1050 level, where the Dollar can gain some upward strength in the short time. Investors should watch the 4,1240 level, whose upward break could bring the price up to 4.15.
