Dollar Weighed by Labor Data

Barbara Zigah

Dollar lost momentum The US Dollar lost momentum against key rivals after the US Labor Department released data that was worse than expected. Analysts and economists had predicted that initial and continuing jobless claim benefits would show an improvement from previous periods. On Thursday, the data showed that initial claims rose to 851,000 for the week ended February 12th, while continuing claims came in at 4.494 million. Analysts had predicted a decline to 765,000 and 4.413 million, respectively; in both cases, the previous week's data was revised higher. That resulted in a shift of market sentiment as FX traders gauged whether their optimism over the US economic recovery was misplaced.

In Tokyo trading as of 10:55 am, the EUR/USD was trading at $1.2089, down 0.0099%; the pair has ranged from a peak of $1.20990 to a low of $1.20853 in today's session. The GBP/USD was lower at $1.3962, a loss of 0.0329%, off the session high of $1.39629. The USD/JPY was lower at 105.6800 Yen, down 0.01%.

Outlook for US Economy Shifts on Data

While analysts continue to paint an optimistic outlook for the US, especially given President Biden's assertion to push for a massive relief program coupled with aggressive vaccine roll out, the most recent data suggests that the greater likelihood is that the recovery will be uneven. They point out that the Federal Reserve continues to watch the labor data closely with a view to modifying monetary policy. One of the mandates that the Fed works toward is full employment; the second mandate is for price stability. .

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.