Resolved Question
If the unemployment for november improved, why is the USD rising?
the unemployment falls to 10%, this is better than previous month's 10.2%. yet the USD is bought, I just dont understand? why? I was looking at the USDCHF and the pair surged above parity even the number improves
over 2 years ago
Best Answer - Chosen by Asker
Fundamental strength, and not risk sentiment, was probably the main driving factor for the USD price action last Friday. Traders also probably took the strong employment data as a sign that the government's and Fed's programs are working and that they might remove some of their easing policies soon. After all, better labor conditions bring the US economy one step closer towards full recovery and higher interest rates sooner or later.
over 2 years ago
Answers (3)
Currencies are put up against each other. EUR/USD for example, the EU may have a dimmer outlook than the U.S., therefore the USD would rise agaisnt the EUR on this kind of news because the EU is expected to do worse in the future and vise versa.
over 2 years ago
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The usdchf is rising on the improve unemployment of u.s,because usd been the base currency is now the goods to be purchased/bought,so with that kind of news more swiss franc will be needed to purchase dollar&this call for a rise in price&traders go long.if usd is now the counter currency as in gbpusd,less usd will be needed to purchase gbp&this call for a drop in price&traders go short.hope it had been answered
over 2 years ago
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Friday's movement caught a lot of people by surprise. For several months now, the USD usually sinks whenever the euro zone and the US relay some positive economic news. Friday was different because as you know, the USD soared despite the better-than-expected NFP number. Last Friday's price action may just be an oddity but if prices begin to react that way for the upcoming news releases, then you better be flexible because the markets may be starting to shift as well.
over 2 years ago
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