The US dollar demonstrated optimism at the start of this week. It climbed against its major peers today, Monday, August 9.
We want to share this latest foreign exchange news regarding the US dollar with our readers. We believe it can affect their trading activities this week. Hence, we want them to stay guided.
According to the update posted online by Yahoo! Finance, an online source for reports related to finance, international market, and the US stock market, the US dollar reached a four-month high against the euro.
The official currency of the United States strengthened as far as US$1.17 to the single currency of the European Union, extending a 0.6-percent pop from Friday, August 6.
Moreover, the US dollar hit a nearly two-week high worth 110.37 yen. The greenback rallied against its New Zealand and Australian counterparts earlier today as well.
It jumped 0.4 percent to US$0.6980 per Kiwi and up 0.3 percent to as high as US$0.7330 per Aussie. As for the US dollar index, which tracks the US currency versus its six rivals, it increased to a two-week top 92.915.
Real-time forex news and analysis outlet FXStreet reported that as the US dollar soared during the culmination of last week, ending it with gains versus most of its major rivals, this event happened following an optimistic US Non-Farm Payroll report.
This document confirmed that the United States added 943,000 new jobs last month. These July 2021 figures in Friday’s non-farm payroll report are compared with the 870,000 jobs prediction by economists in a Reuters survey.
Meanwhile, the unemployment rate in the United States contracted to 5.4 percent, both largely defeating the market’s expectations. Moreover, the US underemployment rate shrank to 9.2 percent, while the participation rate surged to 61.7 percent.
Chris Weston wrote in a client note that US payrolls are a game-changer. The Australian finance brokerage Pepperstone Group Limited’s head of research penned that the US dollar index is eyeing a close above 93, while the US dollar could head for US$1.1704 per euro.
Weston added that the US currency could climb more against the Japanese yen as well, should the US yields carry on ticking higher. The better-than-anticipated employment report revived speculation that the US Federal Reserve System will have to tighten its monetary policy sooner than expected.
We believe that the US dollar and the US jobs report showing an optimistic outlook means that the US economy is slowly recuperating despite the ongoing coronavirus or COVID-19 pandemic. We gathered that the US Federal Reserve System had made the labor market recovery a condition of tighter monetary policy.
We think the COVID-19 Delta variant threat may be in the picture at the moment. However, we believe the US economy can carry on with its recovery since the US Federal Reserve System works on the country’s official currency and exchange rates.