Monday, 11 Jan 2010

Dollar Takes Losses Following U.S. Jobs Report

The week started off on a somewhat volatile note, as a disappointing American jobs report has caused the U.S. Dollar to fall broadly against most of its major counterparts. While it is still too early to tell whether the Dollar rally that persisted in December has been halted, it appears to have slowed down for the moment. This sentiment was highlighted following a statement by a key Federal Reserve official, saying that U.S. interest rates are likely to stay low for the time being. The Euro consequently made gains on the Dollar and the pair is currently trading around the 1.4535 level.

The Swiss Franc fell in trading today, following a statement by the Swiss National Bank chairman who said that the central bank would not tolerate any more appreciation of the Franc against the Euro. EUR/CHF is currently trading around the 1.4760 level, an increase from this morning's price of 1.4725, a 10-month low for the Euro. Franc traders will want to keep this in mind. While CHF may have seemed like a sure bet in the forex market not so long ago, it appears that the currency is still vulnerable to external events.