US Job Losses Less Than Predicted

The US dollar fell against the Euro on Friday as data showed US job losses were not as bad as predicted. Investors took advantage of the Forex investment opportunities as many investors dumped safe haven trades in favor of higher yielding currencies.

Investors Seek Higher Yielding Currencies

Risk appetite returned to currency markets and investors sought out the forex opportunities provided by higher yielding currencies such as the Aussie and New Zealand dollars. Some emerging currencies provided investors with Forex opportunities such as the Thai Baht, the Brazilian Real and the Mexican Peso. Since the US job forecast was pretty much in line with market expectations a slight return to risk appetite sent investors searching for Forex opportunities.

US Dollar to Recover

Many currency experts believe that the US dollar will recover and climb higher. Richard Franulovich of Westpac Banking Corp stated, “I still believe that the dollar has not yet seen its highs. I still have a healthy respect for this uptrend.” Data released on Friday showed job losses of 651,000 in February and unemployment at 8.1%, the highest in 25 years.

Dollar Remains Reserve Currency

The US dollar remains the world’s reserve currency providing forex opportunities and safe haven for investors. The dollar remained almost unchanged against the Japanese Yen which is also considered a safe haven currency. The Yen has struggled lately as dismal economic data from Japan and possible political instability put pressure on the Yen.

Dollar Falls Against Swiss Franc

The dollar fell against the Swiss Franc and the Aussie dollar rose 0.5% to $0.6405 while the New Zealand dollar rose 0.7% against the dollar to $0.5026 providing Forex opportunities to many investors. Todd Elmer of CitiFX in New York stated, “The dollar tested recent highs over the past few sessions, so the moves we’re seeing now are not surprising.”

Worst Slump Since WW2

Many analysts believe that the global economic slump is even gloomier in other parts of the world especially in the Euro Zone which is burdened with a deepening recession in Eastern Europe. A top IMF official said that the industrialized world is in the worst economic slump since World War Two. Brian Kim of UBS stated, “Dollar assets remain an attractive option to risk averse investors, especially as other central bank rates converge to zero and more unconventional policies are implemented.”

Despite the state of the global economy many forex investment opportunities are still available to investors. Markets remain volatile but savvy investors are sure to be there when forex opportunities present themselves.