Dollar soared towards the end of the week as the stellar job report should give Fed much confidence to start tapering later in the year. Reactions from stock markets and yields were also positive, with DOW and S&P closing at new records while 10-year yield rebounded. Together with the steep fall in gold, overall development supports first rally in Dollar ahead, at least for the near term. Nonetheless, Dollar's strength was mainly seen against Euro, Swiss Franc and Yen. Aussie and Kiwi were in deed the strongest for the week while Euro and Swiss Franc were themselves the weakest. A key to watch now is whether comments from Fed officials could help push Dollar through recent resistance levels against Euro, as well as commodity currencies like Aussie, to solidify its momentum. |
