US Dollar Rallied This Week, Stalled on Poor Employment Reports

This week was very positive for the US dollar as the US economy showed the signs of the sustainable growth, but the end of the week spoiled the positive sentiment to some degree as the labor market wasn’t as strong as was expected.

The beginning of this week was very bright for the US currency as every report showed the improvement of the economy. The report of the Automatic Data Processing, Inc. on Wednesday showed the significant growth of the employment, causing the optimistic outlook for the other employment reports. The actual reports frustrated such optimistic outlook as the initial jobless claims grew more than expected, while the 
non-farm payrolls rose less than was predicted. Still, the decrease of the 
non-farm payrolls rose limited the losses of the greenback and hasn’t allowed the sentiment to become too pessimistic.

The dollar fluctuated against the Great Britain pound and closed almost at the opening level. The performance of the greenback versus the Japanese yen was much better as the US currency rallied for the whole week and stalled only on Friday because of the negative reports. The weakness of the euro hasn’t allowed it to benefit from the unfavorable US economic data and the shared European currency declined against the greenback for the whole week.

EUR/USD dropped this week from 1.3343 to 1.2909 after it initially rose to 1.3433. GBP/USD closed at 1.5545. USD/JPY opened at 81.11, rallied to 83.67 and closed at 83.03.

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