After going from strength to strength last week, the release of the US Non-Farm Payrolls on Friday was the dollar’s undoing. Disappointing data revealed that just 20,000 new jobs were created last month, despite forecasts expecting the creation of around 180,000. This caused the dollar to weaken against most major currencies.
Despite this downturn last week, the dollar has bolstered again today, helped along by the uncertainty of Brexit and worries over the downgrade of growth for the euro area. It is therefore performing well against both the pound and the euro.
Later today, US retail sales figures for January will be realised and February inflation figures are expected tomorrow. However, the biggest factor affecting the dollar’s strength could be the result of the second vote on Theresa May’s Brexit deal.
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