(MENAFN- Kuwait News Agency (KUNA)) Â The US market was bullish last week on the US Dollar (USD) on the belief that positive data will prompt the Federal Reserve (Fed) to unwind some of its USD 85 billion monthly purchases, a report by the National Bank of Kuwait (NBK) said Sunday.
However, volatility continues to overwhelm the foreign exchange markets as uncertainty over US Job report added more speculation on whether the Fed will start unwinding its quantitative easing (QE) program, added the report.
Disappointing manufacturing figures joint with a disappointing ADP report raised concerns that non-farm payrolls might upset the market, which pushed investors to cut some of their long positions on Thursday.
Meanwhile, the report noted that Euro gained against the greenback throughout the week as better than expected figures from the EU manufacturing sector combined with cautiousness towards the USD boosted the currency to an almost three-month high.
The Euro gained some momentum as ECB President Mario Draghi showed recent improvements in economic data. The Euro opened the week at 1.3000 and reached a high of 1.3304 amid the ECB meeting. Lastly, the currency closed at 1.3218.
The Sterling Pound moved in tandem with the Euro against their US counterpart. The Pound opened the week at 1.5196, and soared against the greenback to a high of 1.5683. The currency erased some of its gains and closed the week at 1.5558.
The NBK report showed that US private sector added 135,000 jobs last month, while number of Americans filing new claims for unemployment benefits fell last week by 11,000 to a seasonally adjusted 346,000.
Employment in the US increased more than estimated in May and the unemployment rate climbed from a four-year low, jumping from 7.6 percent in May from 7.5 percent the previous month.
The trade deficit in the US widened in April from a more than three-year low, reflecting a rebound in imports of consumer goods and business equipment that eases concern slowdown in economic growth.
The gap grew by 8.5 percent to USD 40.3 billion from a USD 37.1 billion in March shortfall that was smaller than previously estimated.
On the European continent, the NBK report said industrial production retreated in the eurozone last month.
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