Will the Positive Trends Continue?by Tim Manni
The dollar was up 1% last week, posting its third consecutive week of gains. Dollar gains reached their highest level against common currencies in more than a month on Friday. The euro fell 1.3% against the dollar, while the dollar gained 0.9% against the yen. It was the second straight week of gains against the euro, and the third straight week of gains against the yen.
U.S. employers cut jobs in April for the fourth straight month. The losses of 20,000 were far better than the 80,000 predicted for the month, and an improvement over March’s unemployment numbers of nearly 60,000. Salaries increased in April by 0.8% while benefits increased 0.6%.
Friday’s move by the Fed to increase the dollar amount auctioned at the Term Auction Facility (TAF) to the European Central Bank (ECB) and the Swiss National Bank (SNB), as well as their currency increase to the overseas central banks, should increase the demand for the dollar in European markets and continue to make the dollar stronger.
Be sure to read HSH’s Market Trends for a full recap of last week’s market activity.