Will US dollar mark a turnaround this week?

 Will US dollar mark a turnaround this week?

The US dollar index is managing to hold well above its key support level of 89.50. The index rose to a high of 90.63 but had come off sharply from there on Friday. US non-farm payroll (NFP) data failing to meet market expectation dragged the dollar index lower on Friday.

The US added 5,59,000 jobs to its non-farm payroll for the month of May. Though this number was higher than the 2,78,000 jobs added in the previous month, it failed to meet the market hopes for an increase of 6,50,000 in the NFP. The slow pace in jobs growth will continue to keep the US Federal Reserve stance on both the stimulus and interest rates front unchanged. This triggered a pull-back in both the US dollar and Treasury yields on Friday.

The US dollar index (90.13) is managing to hold above its crucial support level of 89.5 but is not gaining momentum to see a sustained rise above 90. This keeps the near-term outlook mixed. As long as the index remains above…

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