Investors managed to lock in profits on a surge of the US dollar boosted by encouraging data on the US unemployment rate. The greenback has been trading lower against the majors this week. However, the market looks quiet as no significant data from the US is due today.
The US Dollar Index declined to the level of 96.22 showing a dip of 0.19% at about lunchtime. The euro climbed to the level of 1.1144 from 1.1115 at the same time. The increase of the single European currency was supported with strong data provided by German industrial production. Thus, the production output rose by 0.9% in April beating consensus forecasts for a 0.5% rise. The USD/JPY pair presents an alternative picture falling to 125.29 from 125.61.
The US dollar strengthened against its major rivals after Friday’s report published by the US Labor Department which unveiled that the US economy added 280,000 jobs in May topping expectations of 225,000. Encouraging economic data increases chances that the upcoming Fed meeting will result in interest rate hikes. However, a decline of the US national currency was obvious after investors had locked in profits.
