US Dollar on a Seesaw Ride

Monday, August 10, 2009

The US Dollar jumped higher against most currencies on Friday after a data release showed that the rate of job losses in the US slowed more than expected last month.

The data capped a week filled with very strong data that suggested the US economy will recover before other economies, and that will lead to higher interest rates and boost the value of Dollar related assets.

This Forex trading pattern was a turn for the Dollar which has been trading down on good news during this crisis. This appears to mark a return to simple fundamentals where trades are made based on economic growth and interest rate speculation.

At the close, the Dollar was up 1.3% to the Euro to 1.4181, up 1.5% to the Japanese Yen to 97.54 up .92% to the British Pound to 1.6681, up .34% to the Canadian Dollar to 1.0811, up .6% to the Australian Dollar to .0837 and up 1.2% to the Swiss Franc to 1.0808. The Dollar did lose .3% to the New Zealand Dollar to .672 - it's only loss of the day.

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