Dollar Soars on Unexpected Non-Farm Payrolls Figures
Posted on 07. Dec, 2009 by admin in USD Analysis, USD Economic Analysis, USD News
The Dollar rallied last week against most of the major currency pairs. Throughout most of the week, the Dollar continued its slow decline from the past few weeks. However, just before the weekend, the Dollar appreciated about 200 pips against the Euro, the Pound and the Yen.
Until Friday, the Dollar continued with its bearish trend due to the negative figures from the U.S economy. The Manufacturing Purchasing Managers’ Index dropped to 53.6 points from 55.7 in October. In addition, the ADP forecast for November’s Employment Change was quite gloomy. The estimate was that another 169,000 people have joined the unemployment circle in the U.S. The unsatisfying figures continued to weaken the Dollar.
However, the Non-Farm Employment Change result on Friday has put an end to the bearish trend. The end result showed that the payrolls on the U.S have declined by merely 11,000 in November, the best figures since the recession began. In addition, the Unemployment Rate has unexpectedly dropped from 10.2% to 10.0%. This result was truly unexpected, especially due to the former ADP forecast, boosting the Dollar as a result.
Looking ahead to this week, a lot of interesting data is expected from the U.S economy. Traders are advised to pay special attention to two major publications: The Trade Balance on Thursday and the Retails Sales reports on Friday. A continuation of positive figures has the potential to further boost the Dollar. In addition, traders should also follow Fed Chairman Bernanke’s speech today. Bernanke is expected to refer to the economy’s outlook, which could create volatility in the market.
