US Dollar Continues Rally

Friday saw the US Dollar continuing its recent run of strength, after the key monthly American labour market statistics showed that 236,000 new jobs were created in February, ahead of expectations of just 160,000. The ‘non-farm payrolls’ announcement also showed US unemployment at 7.7%, better than expectations and sent the price of a US Dollar higher again. May 2010 was the last time that the Pound bought fewer USD than now.

Unemployment figures from Canada on Friday were also better than expected, putting up the price of the CAD. The rate for GBP-CAD fell 1.5c on Friday afternoon and also hit its lowest for 2½ years.

There is not a lot of data due out through the day today, but tomorrow we have the unofficial GDP estimate in the UK, as well as industrial production, both likely to affect sterling. The Pound did recover very slightly against the Euro on Friday, and with no major European data out until Wednesday, it may be a quiet couple of days for the pair. For those of you buying or selling Euros, Thursday’s ECB monthly report and Friday’s Eurozone inflation figures are the main releases of the week.

With the Pound currently struggling across the board with the potential to go lower if we see the dreaded triple dip recession, do talk to us at Currency Index if you have upcoming requirements to buy or sell any currencies.