Dollar jumps following employment data

The US dollar Index - a measure of performance against a basket of six major currencies - rose more than 1.6% today after the smaller-than-expected drop in nonfarm payrolls raised hopes that that the recession is easing and a turnaround in the economy may be imminent.

The strength in the dollar hit the price of gold, which lost $20 to $963. And crude, which has benefited from expectations that the economy is improving and recent weakness in the US currency, fell modestly.

However, oil was down less than $0.50 per barrel, and in my view, that suggests the recent rise in oil prices has less to do with the falling dollar, as some proclaim, and more to do with speculators that seem intent on piling back into crude amid signs the global economy will soon bottom.