The US dollar was surprisingly weak today, falling to the lowest level in almost a week against the euro. The greenback fared somewhat better against the Great Britain pound and the Japanese yen, moving sideways.
It was surprising to see the US currency so soft today. While the weakness of dollar could be explained by poor economic reports yesterday, today such explanations would not be valid as all the economic data from the United States was very good. Yet the dollar’s drop against the euro during the current trading session was even bigger than during the previous one.
Now, markets eye non-farm payrolls report scheduled for tomorrow. It is important to remember that tomorrow’s trading will be abbreviated, meaning that the full extent of market reaction to the NFP will be clear only by the beginning of the next trading week.
EUR/USD rallied from 1.0762 to 1.0879 as of 20:32 GMT today. GBP/USD traded literally at the opening level of 1.4821 while USD/JPY was at 119.72, also not far from the opening.
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