Euro Slightly Higher Amid Easing of Italian Political Tension

Forex News

The US dollar fell versus major currencies, amid strengthening of the euro. The dollar index has lost 0.15% and is at 94.029 level, after gaining about 0.2% on Friday. Still, the American currency remains firm versus Japanese yen, added 0.15% to 109.660 yen, after a 0.6% growth late last week.

On Friday, the data showed an acceleration in the growth of jobs in the US and a rise in wages in May, which increased expectations for a fourth increase in Federal Reserve rates this year and certainly rates will be raised in June. The US Labor Department reported that number of jobs in the non-agricultural sector increased by 223k, while unemployment rate fell to an 18-year low of 3.8%, indicating a rapid tightening of labor market conditions.

The euro increased by 0.2% against the US dollar to $1.1685. Last week, the single currency reached a 10-month low of $1.1510, when concerns over Italian politics peaked in the global markets. The prospect of a snap election in Italy shook investor risk sentiment at the start of last week as some feared the vote could be a referendum on the country's euro membership.

The Australian dollar rose by 0.4% to $0.7599 after retail sales data. According to the Australian Bureau of Statistics (ABS), retail sales grew by 0.4% in April, exceeding growth forecasts of 0.2%.