US Dollar Rebounds alongside Robust Labor Market Stats

The first week of April 2021 ended on a positive note for the US dollar. On Friday, April 2, the US Dollar Index posted its third consecutive weekly percentage gain, based on the report posted online by Financial World, a news outlet focused on delivering the latest business reports, statistics, and fresh news about investments, cryptocurrency, and global currencies.

The non-farm payroll data released earlier in the trading session demonstrated an upbeat mood and partly explained the US dollar’s recovery during last week’s culmination. We are pleased to learn about this latest news in the foreign exchange markets. We believe that the United States is already gradually recuperating from the coronavirus or COVID-19 pandemic-inflicted wounds.

The US Dollar Index is measured against a basket of the world’s six leading currencies on average. The weekend featured the money markets in Singapore, the United Kingdom, Hong Kong, Europe, and Australia closed because of the Good Friday holiday. Additionally, Wall Street in the United States was not open for business. However, the United States’ currency markets remained open as the Lenten celebration is not a government holiday in the country. 

A buoyant US Labor Department report on March 2021 non-farm payroll data largely catalyzed this weekend’s foreign exchange markets. Last month, the US non-farm payrolls rose by 916,000 jobs, based on the report released last Friday. This number marks the largest increase since late August 2020. 

Moreover, February 2021 non-farm payroll details were 379,000. But this previous reading got revised higher to 468,000, showing prospects of a rosy employment landscape in the US labor market. As for the statistics, the US Dollar Index plummeted 0.3 percent to 92.87 during the weekend’s foreign exchange market wrap-up. 

Nonetheless, it has managed to obtain a weekly percentage surge of 0.17 percent, recording its third succeeding weekly rise in a row. The greenback garnered 0.1 percent versus the safe-haven Japanese yen. That figure is 110.67 yen per US$1. As for the euro, it dropped 0.2 percent against the US dollar to about $1.18. 

We are pleased to learn about a solid economic rebound highly likely nowadays in the United States. This event has resulted in the US dollar clocking a third-straight weekly percentage gain. Over the past few weeks, we also found out that hopes have been high for a jubilant reopening of the US economy. These upbeat sentiments are because of the nationwide acceleration of anti-COVID-19 vaccination drives and the Biden government’s over-$2-trillion infrastructure investment proposal.

We believe that the strong growth in the US labor market facilitates further upswings in the official American currency.  We do hope that the US dollar can get strengthened with the latest developments in the United States. At the same time, we hope that these positive developments can also occur in other nations in the coming weeks as COVID-19 vaccination programs commence rolling out.

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