Dollar Momentum Eases

The US Dollar couldn’t maintain the momentum after last Friday’s upbeat labor report provided the greenback with a solid lift. The US Labor Department reported growth in wages at its fastest pace in years, while new private sector jobs surged to 200,000 in January, well above the 180,000 predicted. That has led to increased expectations of the Federal Reserve moving interest rates higher, perhaps sooner than earlier anticipated. The US Dollar Index, a gauge to measure the greenback’s weight, was at 89.097 .DXY, down 0.11%; it had gained some 0.6% last Friday after the jobs report.

As reported at 11:05 am (GMT) in London, the EUR/USD was trading at $1.2459, a gain of 0.01%%; the pair earlier hit a peak of $1.24749 while the trough for the session is at $1.24230. The GBP/USD pair is at $1.4104, down 0.11%; the pair has ranged from a session low of $1.4081 while the peak is at $1.4151.

FX Players Hopeful of BOJ Shift

Against the Japanese Yen, the Dollar is trading at 109.858 Yen, down 0.16%; the USD/JPY pair earlier hit a peak of 110.292 Yen while the low is at 109.730 Yen. The USD/JPY has been lower since the Bank of Japan reduced its purchase of JGBs, which many market players took as a sign that the central bank’s current loose monetary policy was about to be reconsidered. One currency strategist in Tokyo thinks it is too soon to make that call, however.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.