Dollar Falls, Rebound Still Possible

The US dollar fell against other major currencies yesterday and extended its losses today. There is still a change that this week’s employment data will allow the currency to recover.

Non-farm payrolls will be released on April 5 and analysts expect them to show that the rate of growth stayed near 200,000 jobs. According to forecast, the unemployment rate will stay at 7.7 percent, nowhere near the Federal Reserve’s target of 6.5 percent. Such expectations led to speculation that Fed will not feel an incentive to remove stimulus. And such speculation in turn caused anticipation of a dollar rally.

For now though, the dollar remains soft. It fell against both safe and risky currencies, hurting those who hoped to profit from uncertainty surrounding the future of the eurozone economy.

EUR/USD advanced from 1.2846 to 1.2867 as of 3:48 GMT today. GBP/USD rose from 1.5228 to 1.5239, while USD/JPY fell from 93.23 to 93.04.

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