Monday, 10 Aug 2009

Dollar Holds Gains Following Friday's Unexpected Rally

The Dollar continues to hold its gains against the EUR Monday, following a surprising rally Friday after the release of unexpectedly strong U.S Employment figures. Last Friday The U.S currency defied expectations and gained broadly as the key U.S. Non-Farm Payrolls report showed a sharp deceleration in the pace of job losses in the world's largest economy. The unemployment rate also fell slightly, from 9.5% to 9.4%. The EUR gained slightly to trade around the $1.4200 level.

The U.S Dollar did slip slightly against the Yen inching down 0.3% to 97.30 Yen, after rallying as high as 97.79 Yen, its strongest in nearly eight weeks, on Friday. The Yen rose for the first time in three days against the EUR after government reports showed Japan's recession may be easing, encouraging foreign investors to buy Japanese assets.

The Pound continues its decline against both the USD and EUR, trading around the $1.6650 level versus the Dollar, ahead of the Bank of England's (BOE) quarterly inflation report, due Wednesday.