The greenback had the highest rally since April against the euro, pound after a U.S. employment report indicated that fewer jobs were cut than forecasts predicted, fueling investors with optimism towards the North American economy.
The U.S. dollar gained significantly against most of the main world currencies, as the report bringing better than expected news for the employment sector adds to the already growing evidences that the global recession might be ending, and being the United States a key-country for the world economy, favorable news are regarded by traders as an important opportunity to buy assets in dollar, boosting the American currency and stock markets as well. The data on U.S. employment also brought the yen down, regarded as a refuge currency, it was once again hit by investors looking for higher-yielding opportunities.
Analysts say that positive reports that once were increasing attractiveness to high-yielding assets and making the dollar to lose value, now are favorable to the U.S. currency, as a solid economy keep its currency consistent and sustainable. The dollar has been suffering losses since signs of an economic rebound came from Asia, when investors start purchasing higher-yield assets in the equities market and commodity-linked currencies like the Aussie, but a new uptrend might start for the greenback and its economy starts to revive.
EUR/USD fell and closed the weekly session at 1.3967 from 1.4186. GBP/USD traded at 1.5978 from 1.6185.
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