Start of the Next Wave of Dollar Strength?

Grace Cheng submits:Here are today’s market-moving numbers in a nutshell: the US non-farm payrolls showed a loss of 62,000 jobs and the unemployment stood at 5.5%, close to what the majority of the market had expected. And over in the Euro area, the European Central Bank has raised its main interest rate by 25 bp to 4.25%, as predictable as receiving a present on your birthday (from yourself that is).Traders who had positioned themselves ahead of these releases to be long on the Euro and short on the US dollar were all wrong. In a press conference following the rate announcement, ECB chief Trichet did not give any timetable of further rate increases, unlike the previous time. Instead, he was ultra-dovish in his speech, saying that “today’s decision will contribute to achieving our objective”, which basically means “we think the current 4.25% is enough to contain high inflation in the Eurozone for now”.Complete Story »