In early London trading, the U.S. Dollar rose against the common currency Euro, benefiting from investors unwinding their short dollar positions as worries over Eurozone debt resurfaces and strong U.S. payrolls data in the U.S. ease some lingering worries.
As reported at 8:44 a.m. (GMT) the U.S. Dollar traded against the Euro at $1.3953, a gain of .5%; some investors see the Euro retreating further even to $1.3750 as worries over Eurozone debt gain momentum.
The greenback also moved higher against the Australian and New Zealand Dollars, trading at $1.0128 and $0.7868, respectively. One currency strategist in Italy commented that he views the greenback’s rebound as simply profit taking, though he does expect to see further consolidation in the common currency as the week progresses; he further stressed that investors will likely continue to trade cautiously ahead of this weekend’s G20 summit in South Korea, which many believe will focus on trade imbalances.
The U.S. Dollar Index, which gauges the greenback’s strength versus several major currencies, traded at 76.889 .DXY, a gain of .4% following Friday’s encouraging labor data from the United States, which showed that non-jobs payrolls increased more than double what analysts had originally expected.
Disclosure: No positions