Forex updates- Dollar Weakens on Positive Economic News

On Friday the USD closed much weaker against all of the other major currencies, better than expected NFP reports. The recent optimistic global economic news has assured traders that the most terrible of the recession possibly will be over. Traders are moving away from the greenback in favor of riskier, higher yielding assets making market sentiment dollar negative. Equity markets moved higher up with the DOW gaining triple digits and the S&P adding 20 points. The Euro rushed on Friday, it broke all the records of 200 day simple moving average, and closing above the 1.3600.

Since January 2009 the pound closed at the highest level, it hiked at 230 pips on Friday. The pound strengthened against the dollar as the greenback weakened across the board after the employment figures was released and after traders’ worries were calmed with the release of the stress test results.

The Australian Dollar (Aud/Usd) strongly gains all the benefits on Friday after positive news about the stress tests and global equity markets. The pair gained approximately 150 pips, closing above 0.7650 and added 365 pips for the week.