Dollar Weakens Despite Positive Unemployment Data

The US dollar tumbled today even as positive employment data fueled talks that the Federal Reserve is going to tamper back its stimulus program very soon, a move that should bolster the currency.
Claims for unemployment benefits fell by 15,000 to 320,000 last week. It was a pleasant surprise for market participants who have expected no change. Other reports were not particularly good, resulting in doubts if the US economy is really healthy enough to survive without excessive stimulus.
The US Dollar Index dropped 0.5 percent to 1,020.16. The greenback was rising for four straight sessions versus the euro, but lost three days of gains today as the shared European currency surged. Dollar’s losses against other currencies were also big.
EUR/USD jumped from 1.3253 to 1.3348 as of 23:25 GMT today after falling to 1.3205 initially. GBP/USD surged from 1.5497 to 1.5641, the highest since July 19. USD/JPY dropped from 98.11 to 97.13.

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