USD fell to its lowest level in more than two months on Friday after the US nonfarm payrolls shocked the market with significantly lower figures. Currently, DXY Index is trading at around 90.27, and the highest point on Friday was around 90.94. In April, the US only added 266k jobs, versus the expectation of 978k. Some economists previously even forecasted that the US might add 1~2 million new jobs.
Some economists think that, the enhanced jobless assistance may have encouraged many people to stay on government checks until the program ends in September. Currently, the weekly paycheck gives unemployed people $300, which is higher than the minimum wage. Moreover, many schools and daycare centers still remain closed in some regions. Therefore, parents may need to stay at home to take care of children.
Canada followed the US with equally disappointing job data in April. The country lost 175k jobs and the unemployment rate climbed to 8.1%. The expectation of the unemployment rate was 7.8%. CADGBP declined after the news was posted on Friday and currently the pair trades at 0.587, 0.29% down since opening.