On Friday, the 7th of February 2020, the American Dollar index (DXY) measured against a basket of six major currencies in an average had hit the roof to reach a four-month peak of 98.69 following release of a robust US non-farm payroll report.
Aside from that, Friday’s (February 7th) upbeat payroll data followed a gauge of upbeat economic data released this week including a sharp rise in ISM (Institute of Supply Management) manufacturing activity. According to Friday’s (February 7th) non-farm payroll day, the US economy added 225,000 new jobs last month, beating an analysts’ estimate of 160,000 jobs in January.
As investors’ optimism spurred up after payroll data had hinted an economic expansion, the US Dollar index (DXY) had clocked its largest weekly gain of 1.37 per cent in more than two years, while the American currency had hit its two-month peak against its British and Canadian counterpart.
Apart from that, the American currency had also hit its four-month peak against the euro alongside a six-week high against the Swiss currency. Nonetheless, the US Dollar fell against the safe-haven Japanese Yen despite a robust US payroll data and an optimistic outlook over the coronavirus epidemic front in China.
Meanwhile, expressing a through-and-through optimism regarding the US economy in a short- to intermediate-term outlook, a FX strategist at Saxo Markets in London, Olivier Konzeoue, said on Friday’s (February 7th) market wrap up, “Today’s positive prints confirmed that the U.S.
job market is firing on all cylinders, the U.S. economy is expanding. The Federal Reserve looks set to stay put for the time being. ”