Dollar Jumped From 15-mth Low On U.S. Jobs Report. The Dollar holds firm on Monday after a rally based on a strong U.S. jobs data that lifted it off 15-month lows. The dollar index climbed 0.75 percent on Friday. The data released on Friday showed that nonfarm payrolls increased by a bigger-than-forecast 209,000 jobs last month, while average hourly earnings increased 0.3 percent. Strong jobs data helped the dollar by giving a hope of the December interest rate increase by the Federal Reserve, meanwhile markets are still looking for the further evidence of robust fundamentals in order to firm up the dollar upturn.
This is going to be a crucial week for the U.S. currency. U.S PPI numbers for July will be released on Thursday and the CPI figures are due on Friday, they both may have to be better than expected to douse inflation concerns. Only then we will see if the dollar reached a real turning point.
Euro Consolidated After 0.8 Percent Loss On Friday. After the strong U.S. employment data released on Friday that pushed Euro down from its 2-1/2-year high of $1.1910 and made it losing over 100 pips, the pair EUR/USD went into a consolidation phase and is now trading at 1.1788.
Aussie Lost 0.7 Percent On Friday. The Australian dollar is recovering in a minor correction at $0.7931 after losing about 0.7 percent last week against the surged U.S. dollar.
GBP Is Flat After Sharp Slide At The End Of Last Week. Friday’s dollar surge deepened losses for sterling, which was already on the back foot after the Bank of England kept rates unchanged on Thursday and delivered a dovish message. It has slid sharply from a 13-month peak of $1.3267 set earlier last week.
CAD Notched Its Weakest Close In More Than 2-wks. After a strong U.S. jobs data and increase in Canada’s trade deficit on Friday, the Canadian dollar had its weakest close in more than two weeks against U.S. dollar. The Loonie fell 1.7 percent against the greenback last week, but is still up nearly 9 percent since early May.
