The dollar is punishable for employment data that revealed how low the American economy was

The dollar has lost value all year round. It is currently down by almost 9% of the year against the DXY, a foreign currency index, while investors flee to length of the price barriers of President Donald Trump. In June, the USD reached a minimum of more than 10%, but in recent weeks, the dollar has gained ground.

Until Friday.

The dollar went from 100.22 on the DXY on Friday at 98.82 this morning – a relatively large movement for a currency of the dollar size.

Credit: Google Finance

“The Dollar index has undergone its greatest decrease by one day since May 23, when the markets quickly reassessed the prospects for rates and growth,” said George Vessey of Converra to customers in a note.

In his note to customers, analyst ING Chris Turner called him “the hand brake turn of the dollar”.

“The Friday soft job report has eliminated the dollar rally farce. Investors are now attached a probability of 80% to a rate drop of 25 bp of the federal reserve in September,” he wrote. “Uncertainty about the quality of American data is not a good look for the American asset markets and could add more risk premiums both in the dollar and treasury bills.”

Goldman Sachs called it “USD: Whiplash Week”. The bank has also published a moderate note by chief economist Jan Hatzius, who plans that the growth of American GDP would only be 1% in the second half.

His colleague Kamakshya Trivedi argued that although the “media account” suggests that Trump had somehow won “negative” agreements for the United States business partners, most foreign exports – who go to other countries – will not be affected.

“We expect the United States to support most of the cost of prices, which will weigh on its business conditions. This is due in part to the extent of tariff increases, which will make American companies and consumers to find appropriate substitutes,” he wrote.

This is why the dollar is so much lower on foreign exchanges this morning.