NEW YORK (TheStreet) -- The U.S. jobs report dominated headlines last week, but a just-as-important event took place at the European Central Bank on July 4.On that day, the ECB announced it will keep rates at record lows and clearly stated its future policy has a dovish bias. ECB President Mario Draghi wanted markets to know that unlike the central bank's U.S. peer, it was choosing further monetary easing. The first chart below is of CurrencyShares Euro Trust ( FXE) over PowerShares DB US Dollar Index Bullish ( UUP). As the Federal Reserve has moved toward a less accommodative stance, the dollar has strengthened. Most analysts now believe that the first steps toward reining in bond buying will take place at the September Fed meeting. The dollar is now at its strongest levels of the year versus the euro, and if the Fed minutes, to be released on Wednesday, signal that the Fed board has turned mostly hawkish, then the dollar will strengthen even more.
First, Greek strength is a positive testament to the peripheral countries in Europe. It signals that growth may come soon and European weakness may have finally bottomed. The downside, however, is that Germany, the strongest European economy, has contracted a little. Weakness in Germany caps the potential upside that a stronger Europe could reach.
At the time of publication the author had no position in any of the stocks mentioned. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.