The US dollar sank against the majority of most-traded currencies by the end of the past trading week due to the overwhelmingly negative US employment report. The only major currency that was even weaker than the greenback turned out to be the Great Britain pound.
Ahead of the event, things looked good for the US currency as traders were betting on an interest rate hike in the near future. Yet everything has changed after non-farm payrolls showed that employment growth was almost nonexistent last month. Even the drop of the unemployment rate had a darker story behind it, being caused the decrease of labor force participation.
The euro and the Great Britain pound had their own negative factors that led to the weakness of the currencies. The euro was hurt by the European Central Bank’s statement while the pound suffered from polls that showed votes for Britain to leave the European Union are gaining traction.
EUR/USD climbed 2.2% from 1.1112 to 1.1355 over the week. GBP/USD closed at 1.4518, below this week’s opening of 1.4606. USD/JPY slumped as much as 3.4% from 110.40 to 106.62 — the lowest weekly close since the late April.
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