The Greenback managed to squeeze out a net win for the week despite starting on a weak foot. After some dollar buying ahead of the FOMC minutes, traders bounced back and forth between U.S. unemployment data and euro weakness to get to its net positive performance for the week.
The Greenback was bid higher during the morning U.S. trading session, without an apparent direct catalyst. So it’s tough to say why the dollar rallied, but one can argue that traders were lightening up on U.S. dollar short positions ahead of the FOMC meeting minutes.
U.S. weekly jobless claims jump back above 1 million – this was a step back and disappointment from the previous week, which was the first time the jobless claims data came in below 1 million claims in 21 weeks. After a choppy Asia and London session, this event sparked a negative lean in the U.S. dollar for the rest of the session.
Every day, I will present to you my findings and daily commentaries on what recently happened in the economic arena, possible shifts in sentiment, economic events to watch out for, and their effects on currencies.