The US dollar was unable to rally today against most other major currencies even though the geopolitical situation looked favorably to the greenback at the start of the week. The domestic employment report added some strength to the currency by the end of the week, but did not prevent losses against most majors.
The greenback profited from the situation in Eastern Europe as the conflict between Russia and Ukraine intensified. The currency was losing its appeal as tensions eased, but a major hit to the dollar’s well-being was delivered by the European Central Bank meeting. ECB President Mario Draghi not only refrained from adding stimulus, but also was rather hawkish in his comments after the policy decision. The US currency regained part of its strength after the solid non-farm payrolls, but it was not enough to warrant bullish bets on the greenback.
The US dollar was still able to log gains against some currencies, like the Canadian dollar, which suffered from poor employment growth in Canada. The Japanese yen was even a bigger loser than the US currency.
EUR/USD climbed from 1.3758 to 1.3871 and GBP/USD ticked up from 1.6711 to 1.6722 this week. At the same time, USD/JPY pushed higher from 101.47 to 103.29.
If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.