Dollar Falls Despite Good Employment Numbers

The positive reports about the employment in the US weren’t been able to boost the dollar strong enough to help it to appreciate against other currencies. The good US economic data slowed the rally of the euro, but didn’t manage to reverse the upward momentum of the European currency.

The 
non-farm payrolls grew by 192,000 in February, much better number compared with the previous month’s reading of 63,000 (revised up from 36,000). The payrolls were in line with the market expectations. The unemployment rate was expected to go up from 9.0 percent to 9.1 percent despite the increasing employment. The 
non-farm payrolls grew proved such outlook wrong as the rate declined to 8.9 percent. The report about the new orders for manufactured goods was also positive, showing the increase by 3.1 percent in January. The rate of growth was faster than 1.4 percent in December and predicted 2.1 percent.

We’ve seen a strange behavior of the dollar today. The good macroeconomic reports and demand for safety because of the Middle East tensions were positive for the US currency. The fundamentals told the story about the strong greenback, but the reality hasn’t supported it.

EUR/USD closed at 1.3984 after it opened at 1.3967 and rose to the intraday high of 1.4006. USD/JPY closed at 82.31, following the opening at 82.44 and surge to 83.04.

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