Dollar Trims Gains After US Nonfarm Payrolls

  December 07th, 2012 at 19:26, Vladimir Vyun

A heap of hundred dollars US billsThe US dollar rallied today but trimmed gains after US nonfarm payrolls came out much better than was expected. At the same time, the greenback completely erased gains versus the Japanese yen after the employment report.

US employment grew by 146,000 jobs last month, beating analysts’ forecasts of 86,000, and the unemployment unexpectedly fell by 0.2 percentage point to 7.7 percent. The Dollar Index advanced 0.1 percent to 80.355, reaching the highest level since November 23.

Usually, the US currency falls after good news. Indeed, the greenback retreated against some riskier currency, including the Canadian dollar. But the euro had its own negative factors, allowing the dollar to outperform the shared European currency.

EUR/USD traded at 1.2926 as of 19:26 GMT today, following the drop from 1.2965 to 1.2876. GBP/USD was at about 1.6034 after it fell from 1.6045 to 1.6000 earlier. At the same time, USD/JPY slid to 82.34 after rising from 82.38 to 82.81.img src=”/images/currencies/US-Dollar/hundred-dollars-bills.jpg” width=”280″ height=”186″ alt=”A heap of hundred dollars US bills” class=”alignleft size-full” /

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

2 Comments

  1. Md. Masudul Hoque Haidary

    Dear Sir,

    Good day. Do you think EUR/USD will trade at 1.2850 on Monday? I would be grateful to you if you send me your prediction.

    Regards,

    Haidary

    • It may reach that level on Monday, yes. But anything may happen news-wise and it may push EUR/USD into a rally higher up.

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