Dollar rallies on upbeat US jobs report

The greenback rallied across the board on Friday as the release of blockbuster U.S. jobs report triggered speculation of aggressive policy action from the Federal Reserve.  

Reuters reported U.S. employers hired far more workers than expected in July, with the unemployment rate falling to a pre-pandemic low of 3.5%, providing the strongest evidence yet that the economy was not in recession.     
Nonfarm payrolls increased by 528,000 jobs last month, the Labor Department said in its closely watched employment report on Friday. Data for June was revised higher to show 398,000 jobs created instead of the previously reported 372,000. That marked the 19th straight month of payrolls expansion. The unemployment rate was at 3.6% in June. Economists polled had forecast payrolls rising by 250,000 jobs and the unemployment rate steady at 3.6%. Estimates ranged from as low as 75,000 to as high 325,000 jobs.  

Versus the Japanese yen, dollar found renewed buying at 132.53 at Tokyo open and gained to 133.47 ahead of European open before trading sideways. The pair then jumped at New York open after the release of blockbuster U.S. jobs report and rose to a 1-week high at 135.49 in New York on USD's broad-based strength.  

The single currency met renewed selling at 1.0252 ahead of Asian open and retreated to 1.0219 in European morning. The pair then tumbled at New York open in post-NFP trading to an intra-day low at 1.0143 in New York morning before staging a short-covering rebound to 1.0192 on USD's profit taking.  

The British pound traded sideways in Asia before edging up to session highs at 1.2168 in early European morning. The pair then tumbled in tandem with euro in post-NFP trading to a 9-day low at 1.2004 in New York morning before rebounding in tandem with euro to 1.2093.  

Data to be released today week 

Japan current account, trade balance, Eco watchers current, Eco watchers outlook, New Zealand inflation forecast, Swiss unemployment and EU Sentix index on Monday.  

New Zealand retail sales, U.K. BRC retail sales, Australia NAB business conditions, NAB business confidence, U.S. labor costs, productivity and redbook on Tuesday.  

Japan producer prices, Australia consumer sentiment, China PPI, CPI, Germany CPI, Italy CPI, U.S. MBA mortgage application, CPI, wholesale inventories and Federal budget on Wednesday.  

U.K. RICS housing price balance, Japan market holiday, Australia consumer inflation experience, U.S. initial jobless claims, continuing jobless claims and PPI on Thursday.  

New Zealand manufacturing PMI, food price index, France ILO unemployment rate, U.K. GDP, industrial output, manufacturing output, construction output, trade balance, NIESR GDP estimate, France CPI, Italy trade balance, EU industrial production, Germany current account, U.S. import prices, export prices and University of Michigan sentiment on Friday.