Forex - Dollar gains on hopes indicators will surprise further

Published 03/11/2012, 10:21 PM
Updated 03/11/2012, 10:26 PM
EUR/USD
-
GBP/USD
-
USD/JPY
-
USD/CHF
-
AUD/USD
-
USD/CAD
-
NZD/USD
-
Investing.com - The dollar rose against the world's major currencies on Monday, buoyed by better-than-expected unemployment figures released in the U.S. on Friday, which fanned expectations that indicators due out later this week like retail sales will surprise even further.

In Asian trading on Monday, the euro was down against the greenback, with EUR/USD losing 0.23% and trading at 1.3093.

In the U.S. on Friday, the Bureau of Labor Statistics reported the world's largest economy added a net 227,000 nonfarm payrolls in February, outpacing expectations for a gain of 215,000.

The government also revised January's figures upward to 284,000 jobs from 243,000.

While not surging ahead, unemployment figures have come in stronger than expected during the last few months, which is fueling sentiment that other closely-watched indicators are due to surprise on the upside as well.

On Tuesday, the U.S. will release retail sales figures, a key indicator of economic health considering consumer demand accounts for 70 percent of total U.S. economic output.

Plus the Federal Reserve is due to announce its latest decision on interest rates.

Market sentiment is growing that U.S. monetary policy officials are less likely to consider extraordinary easing measures to jolt the economy such as quantitative easing, which are asset purchases from banks that weaken the dollar in an effort to achieve price stability and prime demand for jobs.

The Fed has carried out two rounds of quantitative easing since the downturn, pumping USD2.3 trillion into the financial system in the process.

Stronger demand for jobs and stronger retail sales would make a repeat performance less likely.

Meanwhile, the dollar was up against the pound, with GBP/USD down 0.04% and trading at 1.5667.

The greenback was down 0.32% against the yen, with USD/JPY trading at 82.22, and up against the Swiss franc, with USD/CHF up 0.22% and trading at 0.9210.

The greenback was up against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.19% at 0.9925, AUD/USD down 0.43% at 1.0531 and NZD/USD down 0.49% at 0.8174.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.07% at 80.48.

On Monday, the U.S. will release its federal budget balance, and on Tuesday, the Federal Reserve will unveil its decision on interest rates while retail sales will hit the wire.





Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.