After a bearish week due to the poor US economic reports, the USD is starting to reverse and is gaining strength since the non-farm payroll report was released.
In the end of the week, after a lot of wiggles, the USD ended up lower against the GBP, AUD and the NZD and yet amazingly stronger than the CHF, EUR, CAD and JPY.
The unemployment report has shown a rate of 4.4%, reaching the lowest point for the past five year.
Despite the MSI reports and other economic reports that turned out to be poorer than expected, the over-all view is that the US economy is in a restrained growth but not enough for the Fed to cut the interest rate at least until mid 2007.
In Europe, The main focus was on the ECB press conference, even though the market had a minor reaction to the meeting. The ECB decided to keep the interest rate untouchable at 3.25% until its next meeting in December later this year.
