As this week comes to an end, the U.S. dollar rebounded to the upside, extending the gains recorded during this week, supported by the worse-than-expected jobs report from the world's largest economy in addition to the rising uncertainty in Europe, awaiting more results from the G20 summit and the Greek confidence vote from the parliament today.
The U.S. dollar gained strength against other major currencies after the jobs report from the U.S. showed that the public sector added less than expected jobs to the economy, which raised fears that the labor market could slow again after the improvement seen in the past two months.
The U.S. dollar index (USDIX) opened the session in Asia today at 76.67, and recorded the highest at 77.09 and the lowest at 76.61, and is currently hovering around 77.02. Over weekly basis, the greenback is heading for the biggest gain in more than seven weeks, where after starting this week at 75.00, the dollar recorded the highest at 77.67 and the lowest at 74.97.
However, Europe remains the main focus in the market as uncertainty remains high and dominates the market with no indications from leaders over the implementation of the European plan to end the two-year debt crisis and protect other nations within the zone from a possible Greek disorderly default.
Moreover, investors are looking forward to the Greek parliament to confirm the cancelation of the general referendum proposed by the Greek Prime Minister back on Monday, where Greece is in the danger zone and could default soon in case it doesn't get any financial aid, especially after European lawmakers explained that the entire financial aid for Greece is still on hold including the sixth tranche of 2010's bailout package.
The euro lost strength against the U.S. dollar after the jobs report from the world's largest economy disappointed investors, where all eyes were focused on this report; however, worse than expected data led investors to consider the downbeat fundamentals from Europe today and count the risks of a deep recession.
The common currency, which is currently threatened of loosing one member, opened the session at 1.3822 against the U.S. dollar, where the EUR/USD pair recorded the highest at 1.3868 and the lowest at 1.3744, and is currently hovering around 1.3542.