DXY or the United states dollar index weakened by 0.65 person. That major currency touched the level around 101.88 in the first quarter of New York session in Thursday this week. 

The stock market performance was better and it is a sign that market participants are now hunting for a higher risky asset. It is especially those which the prices have been cut. 

Meanwhile, ADP also gave it’s employment report and it grows some concerns to the America’s NFP or non farm pay roll. This data will be released at the end of this week. 

Elsewhere, the market risk sentiment is also better now related to a development and brand new updates at the energy market. This is welcomed by so many people with the new energy.

Oil Production is Ready to Increase

A good news came from OPEC and Saudi Arabia. These parties are ready to raise their oil productions in the market if Russian output slumped because of the west Sanction on Moscow. 

This news is balancing a worry which has been appeared after the European Union leaders agreed to cut off most of the Russia’s oil import. That was still done although the situation was quite hard. 

The example is when recent oil price is still around the level of USD 120 per barrel. USD as a major currency and trusted safe haven since the Ukrainian crisis broke.

That came back to follow the market sentimebt recovery. It is also supported by the other positive conditions happened in this world lately. Pandemic is one of the topics. 

China’s Decision due to their Lockdown Brings a Good Effect 

So far, it can be seen that a concern due to global economic slow down is less. Vice versa, many people and governments are having the strong optimism about economy situation ahead. 

The cause is China that loosened their restrictions and lockdown in various cities in the country. The case or positivity rates there are also declining which is good for that country.

Generally, there are some factors seen that they fight greenback today and had the different direction. The major currencies in the market made their high volatility on this case. 

For your information, Comdoll becomes the winner. Based on a release, NZD / USD and AUD / USD was 1.2 % stronger. Meanwhile, USD/CAD felt to it’s lowest level since 22nof April this year. 

Dovish Monetary Policy by BOJ and It’s Impact

It could be note that some pairs showed a more moderate performance. Those are like THE EUR/USD and also GBP/USD. In the other side, USD / JPY was corrected due to a recent situation. 

That pair was a little bit under the level of 130.00. The cause is an expectation about BOJ monetary policy which is too dovish. That is why; Yen is weaker than the United States dollar. 

This may happen for a long term period. Now, the market participants are waiting and curious about the right action to anticipate the non farm payroll data release of the america. 

That report is quite normal to public, especially at the first Friday every month. Since it is essentials, most traders prefer to wait it before making their further decision in trading. 

Further Declines of Payroll May Occur

Consensus estimation made a prediction that a further added decline of payroll may happen again. It was from 428k to become 325 k in May 2022 period. Another situation is also found. 

There is also a risk that that data can slip from the expectation. The cause is the publication of ADP non farm employment change this night was quite dissapointing for some parties. 

ADP reported the added Jobs for about 125 for the May period this year. It means that it was not even half from the consensus estimation of 300 k. The April 2022 data revised as well where it declined from 247k to become 202k.