Dollar Tumbles Following Non-Farm Payrolls Release
September 6th, 2010 Posted in Daily Forex News
The most significant trend in last week’s trading was the bearish U.S. dollar. The dollar fell last week following several positive economic releases form the U.S. economy. Reports have shown that confidence in the U.S. regarding current and future economic conditions has unexpectedly risen in August. In addition, the number of contracts to purchase U.S. previously owned houses unexpectedly rose in July by 5.2%, beating expectations for a 1.3% fall. The Non-Farm Payrolls report on Friday also provided better-than-expected figures. This has eased concerns that the economy is falling back into recession, and as a result turned investors to look for higher-yielding assets, such as the euro.
It currently seems that for as long as the U.S. economy will continue to provide positive signals, the dollar might weaken further, especially vs. the euro.
As for today, U.S. banks will be closed in observance of Labor Day, and no significant publications are expected from the leading economies. Traders are advised to follow global equity markets as positive trading is likely to put further bearish pressure on the dollar.
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Tags: EUR, Forex, Manufacturing Index, Non-Farm Payrolls, USD
