Source: ForexYard
The USD posted gains across the board on Friday, following the release of a better than expected US Non-Farm Payrolls figure. The US added 243K jobs in January, a significantly better number than the forecasted 150K. The positive jobs report resulted in the US Unemployment Rate dropping 0.2% to 8.3%, its lowest level in three years.
Following the release of the employment figure, the dollar rallied against virtually all of its currency rivals, including the euro and Japanese yen. The EUR/USD dropped as low as 1.3065, before staging an upward correction. The USD/JPY shot up over 50 pips, reaching as high as 76.72. The bullish dollar temporarily eased fears that the Bank of Japan (BOJ) would soon intervene to limit yen growth.
Whether or not the dollar is able to maintain its bullish momentum next week, is largely dependant on euro-zone news. Specifically, investors will be closely watching Greece to see if that country can successfully come to a debt swap agreement with its investors. Additionally, rumors that Portugal could be on its way to defaulting on its debt have weighed down on the common currency. Should any positive euro-zone announcements be released next week, investors may shift their assets toward riskier currencies and give the euro a boost.
Forex Market Analysis provided by ForexYard.
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