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Will a Jobs Recovery Boost the Dollar?

Monday, 9 May 2011 | 8:42 AM ET

Friday's better than expected jobs report gave the dollar a lift, and these experts think it could continue.

Joe Lavorgna, Deutsche Bank's chief U.S. economist, was impressed on several fronts today. Not only were the jobs numbers significant, but the upward revisions in past data were a positive as well, he told CNBC's Melissa Lee.

Lavorgna expects the strong data, which was especially robust for private sector jobs, to help the dollar strengthen against the euro.

"This ultimately is all very dollar positive," Lavorgna said. "If the U.S. economy strengthens, and strengthens relative to Germany, I think you'll see the dollar strengthen vis a vis the euro."

What's wrong with the euro? Rebecca Patterson, chief markets strategist
J.P. Morgan Asset Management, Institutional, sees multiple reasons for pessimism. Jean-Claude Trichet, president of the European Central Bank, has thrown some cold water on investor hopes for an interest rate hike in June. Also, Patterson said, the brouhaha today over a report that Greece was considering pulling out of the euro zone could lead to further weakness.

For a way to trade these opposing trends, Andrew Busch, global currency and public policy strategist for BMO Capital, suggests waiting for the euro to tick up to $1.4510, and then selling it against the dollar. He would set a stop loss of $1.4655, and a target of $1.4210.

You can watch the whole discussion right here, starting at 5:57.

Money Match Up
Will the Greeks 'bail out' on the Eurozone? Reports of the Greeks leaving the Eurozone spook investors, even after a very positive jobs number. Also, will a strong jobs report stop the dollar slide, with Joe LaVorgna, Deutsche Bank. And using currencies to play commodities.

CURRENCY FUTURES

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