US Session – Dollar rally unstoppable after breaking 100 yen
May 10, 2013 9:38 pm
The US dollar continued to strengthen against most major currencies on Friday, after breaching the 100 yen level on Thursday caused a strong rally in the USD across the board.
The improving US labor market, highlighted by a drop in jobless claims on Thursday and strong nonfarm payrolls last week as well as the diverging views on policy between the Federal Reserve and other central banks has helped ignite dollar strength.
A strong economy would give the Fed reason to pull back from its $85 billion in monthly asset purchases. Other major central banks, namely the Bank of Japan and the European Central Bank have loosened monetary policy recently.
The dollar hit its highest level since October 2008 against the yen, trading as high as 101.97 yen in Friday’s New York trading session.
The dollar also notched a one-month high against the euro late in the session, as EURUSD slid to $1.2934, unable to make it back above the key $1.30 level.
GBPUSD dipped to $1.5313 while USDCHF hit an 8-month high of 0.9626.
The Canadian dollar fell to its lowest level since April 29 against the greenback, after disappointing Canadian jobs data. After today’s data, USDCAD surged to $1.0151 from $1.0071.
The Australian dollar sank to parity against the dollar for the first time since June, reaching as low as $0.9960 before ending back up at $1.0007.
The stronger dollar weakened gold down to $1,419.39 as many commodities priced in dollars have an inverse price relationship.
The US dollar continued to strengthen against most major currencies on Friday, after breaching the 100 yen level on Thursday caused a strong rally in the USD across the board.
The improving US labor market, highlighted by a drop in jobless claims on Thursday and strong nonfarm payrolls last week as well as the diverging views on policy between the Federal Reserve and other central banks has helped ignite dollar strength.
A strong economy would give the Fed reason to pull back from its $85 billion in monthly asset purchases. Other major central banks, namely the Bank of Japan and the European Central Bank have loosened monetary policy recently.
The dollar hit its highest level since October 2008 against the yen, trading as high as 101.97 yen in Friday’s New York trading session.
The dollar also notched a one-month high against the euro late in the session, as EURUSD slid to $1.2934, unable to make it back above the key $1.30 level.
GBPUSD dipped to $1.5313 while USDCHF hit an 8-month high of 0.9626.
The Canadian dollar fell to its lowest level since April 29 against the greenback, after disappointing Canadian jobs data. After today’s data, USDCAD surged to $1.0151 from $1.0071.
The Australian dollar sank to parity against the dollar for the first time since June, reaching as low as $0.9960 before ending back up at $1.0007.
The stronger dollar weakened gold down to $1,419.39 as many commodities priced in dollars have an inverse price relationship.
Related Posts: