Dollar bulls had high expectations for this trading week due to the optimistic outlook for the US non-farm payrolls. But their hopes were shattered after the employment report turned out to be far worse than it was expected.
Market participants have been mostly bullish on the dollar as they were anticipating another solid reading from NFP. Yet in a surprising turn of events the data came out much weaker than the optimistic expectations. And it had a huge negative impact on the dollar.
What does it mean for dollar in the longer run? It is hard to judge the market reaction right now as many markets were closed for Good Friday, meaning that the reaction was muted, and its full extent will become clear at the start of the next trading week. But it is safe to say that the greenback should perform far weaker now.
EUR/USD rallied from 1.0885 to 1.0971 over the week, bouncing from the low of 1.0714. GBP/USD gained from 1.4886 to 1.4915, erasing the earlier drop to 1.4738. USD/JPY dipped from 119.21 to 118.95 after reaching the weekly high of 120.35.
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