FX Closing Comments

After today's NFP, which came in soft at 75,000, the Dollar fell roughly 100 ticks against the Euro. The Dollar fell similarly against the other majors, as the Dollar index closed down 74 on the day. Although the unemployment rate slipped to 4.6%, there was a downward revision to the last months NFP that implied to many analysts and traders that the Fed would be more likely to pause in June. The prospect of the Dollar losing its rate support precipitated today's price action. The next major release will be May's core CPI figure, due latter in the month. A soft inflation picture might tilt the balance in favor of the "pause camp" and keep rates unchanged at 5%.