Dollar Bears Undaunted after Burning in Jobs Rally
Dollar bears, singed by the currency’s biggest rally since January, say they’re still holding their ground. Bloomberg’s dollar index surged as much as 0.8% on a government report showing that the US added 209,000 jobs in July, beating the consensus prediction of 180,000. The data highlighted the strength of the world’s biggest economy and sparked a surprising reversal for the greenback, which sat close to a 15-month low ahead of Friday’s report. The end result, though, is that the dollar is merely back to around where it started the week against the euro, which held above a key technical level that it breached last week for the first time since August 2015. The dollar-bear camp can also take cheer in one observation: Expectations for the pace of Federal Reserve tightening barely budged on the report. “It is more of a story of providing underlying dollar support at key levels rather than a full-on reversal,” said Alan Ruskin, global co-head of foreign-exchange research at Deutsche Bank. The dollar ended Friday at $1.1773 per euro, about 0.2% weaker on the week. Europe’s shared currency bottomed out just above the $1.1714 level it exceeded last week for the first time in almost two years.