Robust US economic data spark a rebound in the greenback

The US dollar looks likely to record its largest weekly rise against other major currencies since its cyclical peak in September of last year. While investors’ dovish interpretations of announcements by the Fed, BoE, and ECB led the dollar on a roundtrip against major European currencies over the past few days, today’s huge upside surprise in US payrolls and the ISM services index drove a broad-based rally in the dollar as investors pencilled in more Fed tightening.