U.S. Payroll Data Sends U.S. Dollar Lower in Currency Trading

Good economic data is not helpful for the U.S. dollar these days. Indeed, the greenback is faltering in forex trading on the currency market on the news that non-farm payroll numbers have improved. Signs that the U.S. economy may be improving are cues to stop buying the dollar as a safe haven in currency trading. Kathy Lien reports on FX 360 about the connection between an improving economy and the dollar weakness:

Since risk appetite is the dominating theme in the currency market these days, the good number has prompted investors to sell the U.S. dollar and move into riskier, higher yielding currencies.

Some of these higher yielding currencies include the euro, which is being helped in forex trading by positive German trade data. Additionally, the down under currencies are benefitting as well.

As long as focus is on recovery, and the U.S. dollar is not needed for capital preservation, it is likely to see weakness in currency trading.