The dollar climbed to an eight month high versus the EUR on Friday after the release of the U.S. jobs report. Credit concerns in Europe are weighing on the market as traders have moved out of riskier currencies and into the safety of the dollar and yen.
The greenback was significantly stronger across the board at the end of Friday’s trading with the lone exception coming against the Japanese yen. Driving the dollar higher was a combination of a strong U.S. jobs report and European economic sovereign debt fears.
At the end of Friday’s trading, the EUR/USD was trading at 1.3677 from an opening price of 1.3741. The pair shed 1.3% of its value from the previous week. The GBP/USD was also trading lower, trading at the price of 1.5639 after opening at 1.5733.
The release of the U.S. Non-Farm Jobs report by the department of labor helped to continue the bullishness of the dollar’s most recent rally. Despite the loss of 20K jobs for the previous month after expectations of an increase of 10K, the unemployment rate dropped to 9.7%. This shows U.S. employment conditions are improving from their low point in the recession. An expectation for the next month may be positive job growth.
The jobs report capped off a strong week for the dollar. This trend may continue for the upcoming trading week as traders will be looking for further positive economic data to verify the trend of an improving U.S. economy. Traders should be eyeing both Wednesday’s U.S. Trade Balance and Thursday’s Core Retail Sales numbers for confirmation.