The US dollar climbed yesterday on the very good non-farm payrolls, demonstrating that recovery of the US economy is gaining momentum despite all the budget issues that the United States have.
US non-farm employment grew by 236,000 jobs in February after rising 157,000 in January. Forecasts were not as optimistic, promising an increase by 162,000. Moreover, the unemployment fell from 7.9 percent to 7.7 percent, even though it was expected to stay unchanged.
The Dollar Index reached its highest level since August 3. The positive employment data fueled speculations that the Federal Reserve may reduce stimulus earlier as the economy looks strong enough to survive without excessive accommodation.
EUR/USD fell from 1.3105 to close 1.2997. GBP/USD dropped from 1.5010 to 1.4919, the lowest close since June 2010. USD/JPY advanced from 94.80 to 96.04 — the highest since August 2009.
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