Forex Europe Review – Dollar tumbles on weak jobs data

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Forex News - USD gains across board as Canada’s CPI comes out lower than expectedThe Euro initially traded sideways for most of the European session in anticipation of the key US non-farm payrolls report. EURUSD hovered near a one-month high as investors were worrying that weak data could signal a protracted soft patch in the world’s biggest economy and weigh further on the U.S. currency. Upon release of the data, EURUSD shot up 35 pips to 1.4529 within minutes.

 

Early in the session the Pound fell against the greenback on weak UK Services sector PMI. Cable then steadied just before the US jobs data, supported by the fact that the Dollar could fall. This briefly gave a boost to the Pound after the news, preventing further decline past the earlier low of.1.6285. Highs were touched at 1.6358. EURGBP was on the rise all day but soon ran out of steam after failing to breach the high of 0.8997. Profit-taking ensued from UK key names and US investment houses which had earlier bought up the pair on dips after weak UK Services PMI data.

 

The Dollar began its downfall against the Swiss Franc from the morning and continued rapidly down after the US jobs data was released just before the close of the European session. USDCHF opened at 0.8439 and dipped to as low as 0.8349 before closing at 0.8385. The Swiss Franc was boosted by its safe haven quality, so investors who are now concerned about the US and overall global economic health are turning their investments to the safer Swissy.

 

Concerns about a weak U.S. jobs report helped drive the U.S. Dollar to a four-week low versus the Yen. It was downhill all the way from the open of 80.67 and plunging sharply after the Non-farm payroll report down to 80.04. The Japanese Yen is considered a safer currency versus the greenback so demand will drive it up as concerns for the health of the US economy grow.

 

 

EURUSD GBPUSD EURGBP USDCHF USDJPY
OPEN

(07:00 GMT)

1.4473 1.6336 0.8858 0.8439 80.67
DAY’S HIGH 1.4529 1.6358 0.8897 0.8444 80.71
DAY’S LOW 1.4450 1.6290 0.8867 0.8349 80.04
CLOSE

(14:00 GMT)

1.4472 1.6303 0.8876 0.8385 80.24