After Friday’s strong emotions, the Dollar Index is pretty much flat on the day as the foreign exchange market pauses for breath during early Monday trading. Against all expectations and predictions, the US economy added 2.5 million jobs during May, a sign that the economic recovery may be faster than expected. As the future looks a little brighter it is now more likely that at this week’s meeting the Fed will decide to keep decisions on hold, a stark change from only a few days ago, when more easing was widely expected. This change in perspective is providing support to the Dollar.
