The Dollar has weakened further today following the release of weak US labour data and is ending the week down about 1% in trade-weighted terms. The US economy created only 75,000 jobs in May – well below the average of 144,000 recorded in the past three months — and real weekly earnings growth slowed to 0.9% yoy from 1.4% yoy in April. This should not have come as a major surprise as private-sector jobs data released on Wednesday had been very weak and yet markets have pulled US yields sharply lower across the curve and dragged the Dollar down versus most currencies. The EUR/USD cross has pushed through 1.13 and AUD/USD has jumped above 0.70.
