There is a clear positive relationship between the USD (dollar) and US non-farm payroll.
As displayed in the below chart we have the actual US payrolls from April 21 onwards and the forecasted/expected one. We observe that every time the released payroll number is greater than the expected one we have an increase in the DXY, meaning that the dollar is getting stronger against the other currencies.
When the released payroll number is either in line or lower than the expected one we observe DXY to be unchanged or a decrease in the dollar.
This means that 'dollar strength' happens only if it is unexpected by the market. If it is expected there is no real effect!
As displayed in the below chart we have the actual US payrolls from April 21 onwards and the forecasted/expected one. We observe that every time the released payroll number is greater than the expected one we have an increase in the DXY, meaning that the dollar is getting stronger against the other currencies.
When the released payroll number is either in line or lower than the expected one we observe DXY to be unchanged or a decrease in the dollar.
This means that 'dollar strength' happens only if it is unexpected by the market. If it is expected there is no real effect!
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