The U.S. Dollar enjoyed an appreciation rally where two events, Emerging market slowdown and Eurozone crisis, boosted the American currency across the board.
Fundamental data has been released this week that points to the flaws of using the USD as a safe haven, yet at the same time paint a picture of how worried investors are about the two events that a U.S. economy in a weak recovery is the more attractive alternative.
The Non-Farm Payroll Report issued by the Department of Labor it showed a lower than expected increase of 69,000 jobs. April was revised downward to 77,000 from an earlier figure of 115,000. The unemployment rate was slightly higher at 8.2% from 8.1% last month.
The ISM report was also weaker. It had a previous reading of 53.9. A reading above 50 is a sign of economic expansion. The May figure was slightly lower coming in at 53.4.
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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