USD Graphic Rewind: A Week Packed with High Risk Events Yields to NFP Fever
- US Dollar sets a new monthly high on strong NFP’s
- Greenback gains were unwound following Thursday’s rally
A look back at the past week of Forex trading using movements in the US Dollar Index:
US Dollar 1-Hour 17:00 11/03 to 12:00 11/08 EST
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After a week of rises and falls, the Dow Jones FXCM Dollar Index finally established itself above last week’s high on the release of unexpectedly strong US change in Non-Farm Payrolls.
The US Dollar index initially saw a slow decline from the weekly open through Wednesday night. Greenback spikes on the RBA Rate Decision and US ISM were quickly erased by improved UK PMI for Services and a story about the
The US Dollar started its big Thursday rally on a worse than expected Australia employment change, and the greenback index then completed a 70 point rally in the London session on a back to back surprise ECB rate cut and strong US GDP release. The Dollar index rallied to a new monthly high.
However, those gains were completely unwound through the rest of the NY session, as greenback traders may have wanted to see the result of the NFP’s before allowing for any lasting changes in the US Dollar levels.
On Friday, the Change in Non-Farm Payrolls nearly doubled expectations and sent the US Dollar index on an unrelenting 90 point rally above 10,600. This time, US Dollar traders seemed to have more conviction for the greenback gains, as the jobs number may have strengthened arguments for a taper in December.
Charts created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
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