Unemployment Decline Boosts Greenback Rally

The dollar ended this week’s session posting a weekly advance versus most of the 16 main traded currencies in foreign-exchange markets as an unemployment report published this Friday brought more positive figures that are providing support for the greenback’s bullish pattern.

The dollar repeated last week’s advance versus several currency and benefited from a risk averse scenario in which traders opted to protect their portfolios investing in the safety provided by the greenback. The pound lost considerably towards the end of the week as Bank of England officials commented that its asset purchase program, currently paused, may be resumed if the British economy fails to reestablish its dynamism. A part from risk aversion, a positive report surprised forex traders this Friday, as the unemployment rate declined to 9.6 percent in the U.S., not confirming forecasts that suggested the same level from the previous reading at 10 percent.

The dollar is likely to remain bullish during the next weeks, as the nation’s reports are better than the most economic regions around the word, and several factors like Europe’s budget deficit and China’s lending restrictions are contributing for an increase in pessimism among traders.

EUR/USD traded at 1.3653 as of 20:41 GMT from a previous intraday rate of 1.3733. GBP/USD traded at 1.5618 from 1.5764.

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