» Forex - Dollar rose after better US employment report and large fall in German Ifo Index

The Dollar rose across the board on Thursday after US government data showed resilience in the labor market, while a key measure of business sentiment in Germany plunged undermining the Euro. The Euro’s fall followed an early week rally to a record 1.6019 on Tuesday, the highest level since the Euro’s inception in 1999, as investors bet the ECB would raise interest rates to restrain inflation.

The headline Ifo index fell to a much lower-than-expected 102.4 in April, its lowest since January 2006. The Ifo, coupled with a slump in the euro zone manufacturing PMI to levels nearly implying an economic-contraction on Wednesday, suggested that the euro zone may not be immune to a US economic slowdown.

ECB President Jean-Claude Trichet said on Thursday that there is concern about the impact of currency fluctuations on financial stability.
The Dollar’s gains come as investors look closely at whether the Federal Reserve might be ready to pause in its aggressive run of interest rate cuts afte

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