U.S Dollar Posts Biggest Gain in Weeks
On Friday the U.S. Dollar posted its biggest gain in weeks against a basket of currencies. The strong up move was triggered by a better than expected Non-Farm Payrolls Report which showed a decrease in the unemployment rate from 10.2% to 10%. The pace of job losses also declined and there was a revision to the better in October.
Traders bought the Dollar on the thought the Fed would begin reducing stimulus and raising interest rates sooner than previously estimated.
Technically, the move in the Dollar was only one week up, but it did lay the groundwork for a further rally next week by taking out last week’s high at 75.66. The weekly chart is the one to watch for the best change in trend indicator. At this time the main trend will turn up when this index crosses the November top at 77.50.
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