The US Dollar (USD) is catching its breath after a turbulent week. It weakened considerably against major currencies, with the USD Index dipping below the key level of 103.00. This comes despite a stronger-than-expected jobs report from the US Bureau of Labor Statistics (BLS).
Jobs Data Fails to Impress
The BLS reported a solid increase of 275,000 jobs in February, exceeding market expectations. However, the positive news was overshadowed by a downward revision of January’s job figures. The unemployment rate also ticked slightly, and wage growth showed signs of cooling. These mixed signals left investors cautious about the USD’s strength.
Focus on Inflation
Economic data releases are quiet at the start of this week, but inflation remains a hot topic. Over the weekend, China reported a surprising jump in inflation, exceeding analyst forecasts. This could impact global markets, including the USD, as central banks grapple with rising price pressures.
Major Currency Movements
The Euro (EUR) capitalized on the USD’s weakness, reaching a two-month high.
The Japanese Yen (JPY) also gained ground against the USD, with USD/JPY trading near multi-week lows. Meanwhile, the Australian Dollar (AUD) held onto its previous week’s gains despite the inflation data from China.
Gold Shines Bright
While the USD cools down, gold continues its impressive rally. It reached a new record high of $2,195 on Friday and shows no signs of slowing down.
What to Watch Out For
The coming week could see renewed volatility in the USD depending on the upcoming economic data and central bank decisions. Investors will be closely watching inflation trends and any signals from the Federal Reserve regarding potential interest rate hikes.
Stay Informed
This is just a snapshot of the current currency market landscape. For the latest updates and in-depth analysis, keep an eye on reliable financial news source BitGenix and research before making any investment decisions.
