U.S. Dollar Volatile but Unchanged on Speculation, Data
Created Using Marketscope 2.0
THE TAKEAWAY: The U.S. Dollar saw volatility over the course of the week, but ended largely flat as both data and speculative investors proved conflicting factors.
The U.S. Dollar rallied sharply higher on Friday of last week as U.S. payrolls rose 236,000, beating estimates of 165,000 and the jobless rate fell to 7.7% from 7.9%. After trending downwards into the start of this week as traders awaited various sets of data, the Greenback rallied as newswires reported that remarks made by the Bank of Japan Governor nominee Haruhiko Kuroda suggested that he may take action before the next meeting.
After the brief rally, the most liquid currency in the world lost ground against the British Pound as a recent and rapid slump in the U.K’s currency prompted investors to query its legitimacy, forcing it higher despite soft data coming out of the region.
More strong data came out of the U.S. later in the week with retail sales showing an increase of 1.1% causing even more demand for American Dollar denominated assets as investors saw positive signs in the world’s largest economy. This was short lived however, as a large improvement in Australian employment data sent the Australian Dollar soaring against most of its major counterparts. The data print included an addition of 71,500 jobs in February and a fall in the unemployment rate from 5.5% to 5.4%.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.