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Hi, I’m … and this is your UFX Markets Week in Review. Today, we will cover some
of the major events of the past week and discuss how they impact the global currency markets.
The US Dollar strengthened against the Japanese yen as higher than forecast nonfarm payrolls
data emerged from the USA, decreasing speculation about a Federal Reserve monetary stimulus.
The US nonfarm payrolls increased by 227,000 in February after rising by a revised 284,000
the previous month, Labor Department figures showed. The US Dollar was last trading against
the Japanese yen at a rate of 82.43, which is an increase of 1.10%.
The Euro declined for a second week against the US Dollar after Greece held investors
to taking losses on holdings of the nation’s bonds, decreasing demand for assets linked
to growth in the EU. The Euro fell after Greece invoked ‘collective actions clauses’ to
promote investor cooperation in its government bond swap to forgive more than 100 billion
Euros of debt, paving the way for a second bailout. The Euro was last trading at the
level of 1.3122, which is a decrease of 1.14%. The British Pound had its biggest weekly decline
against the US Dollar since November as the report emerged showing that US employers added
more jobs than forecast last month. The Bank of England maintained its quantitative easing
program with a pledge to purchase 50 billion pounds of bonds by May and it kept its benchmark
interest rate at 0.5 percent. The British Pound was last seen trading at the level of
1.5668, which is a decrease of 1.02%. The Canadian dollar strengthened after the
central bank said that conditions in the domestic economy and the European debt markets are
improving and after the US added more jobs than forecast last month. The Canadian Dollar
was last trading at 0.9902, which is an increase of 0.03%.
In Commodities, oil rose after the improved nonfarm payrolls report came out of the USA,
increasing optimism that the world’s largest economy and fuel demand will grow. Crude Oil
was last trading at the level of 107.40 a barrel, which is an increase of 0.77%.
Demand for gold is rising as European leaders attempt to contain the region’s debt crisis
and governments from the USA and the United Kingdom try to maintain interest rates at
all-time lows to stimulate growth. The Federal Reserve and the Bank of England have purchased
debt and the European Central Bank has extended unlimited three year loans to the region’s
lenders, which is driving investors to purchase gold as protection against inflation. Gold
was last trading at the level of 1,713.37 per ounce which is an increase of 0.81%.
Well, that is all the time we have for today. I hope you’ve enjoyed this week’s review
and you'll join us next week. Until then, be sure to visit us at UFXMarkets.com for
all of your online trading needs. For UFXMarkets, I’m …. Good luck and happy trading.