North-West Financial Broker
Personal Area
Personal Area
05 Apr - Fundamental
The dollar was mostly lower in early Monday trading, as investors considered last week's jobs data and continued concerns about Greece's debt.
What prices are doing: The dollar fell 0.1% against the yen to ¥94.475 and 0.4% versus the British pound to $1.527. But it rose 0.1% to $1.348 against the euro.
What's moving the markets: The value of the greenback mostly dipped as investors' returned from the long weekend with improved confidence in the economic recovery.
Friday's much-anticipated jobs report from the Labor Department, which said that the U.S. added 162,000 jobs in March, was an indication that the economic recovery has taken hold.
Stocks were set to open higher Monday, after the markets were closed for the Good Friday holiday. The major indexes were to begin the session at 18-month highs.
Investors view the stock market as a indicator of strength or weakness in the economy. A rising stock market tends to send the dollar down against major currencies, as traders flee safe haven currencies, such as the dollar, for riskier ones.
What analysts are saying: «The March employment report confirmed that the trend in the U.S. job market and indeed the economy remains upward and onward,» said analysts at Forex.com in a report
Still analysts said that much of the dollar's strength against the euro is attributed to persistent worries over Greece's stability.
«Credit default swaps for Greece, Portugal and Spain surged to recent highs this past week, just after the EU accord on Greece, which should serve as a reminder that EU credit concerns are still an issue,» analysts for Forex.com said.
The British pound continued to enjoy a boost because of better-than-expected economic reports announced by the U.K. government last week. But Forex.com said any major appreciation in the currency will be stifled ahead of the May general election.
Looking ahead: Investors will be keeping a watch on China's currency policy, which many economists believe has been artificially held down to boost Chinese exports and bolster its economy.
Revaluation of the Chinese yuan would be seen as supporting the global recovery by improving the export competitiveness of developed economies such as Japan or Germany, Forex.com analysts said.
Several economic reports are due out this week, including consumer credit and chain-store sales.
