Job figures boost US dollar
THE dollar moved sharply higher against the euro overnight on news of a fall in the US unemployment rate and the upward revision of job creation figures for August and September.
The single European currency in late-day trade was at $US1.2705 after $US1.2776 late Thursday in New York.
The US dollar was meanwhile trading at ¥118.10 against ¥117.11 on Thursday.
In Washington the Labor Department said the US unemployment rate fell to 4.4 per cent of the working population - the lowest since May 2001 - from 4.6 per cent in September.
The agency also revised up its estimate of job creation in the prior two months. It said 148,000 jobs were added in September, up from an estimate of 51,000, and 230,000 in August, instead of 188,000.
Only 92,000 jobs were created in October, well short of market predictions of 125,000, however.
"Today's non-farm payrolls temporarily suspended the bout of dollar selling seen this week amidst soft US data and hawkish comments from the European Central Bank," said Michael Woolfolk, currency strategist at Bank of New York.
For now, the improvement on the jobs front coupled with a higher than expected 0.4 per cent rise in average hourly wages have combined to diminish expectations that the US Federal Reserve will cut borrowing costs any time soon.
The Fed kept its key interest rate unchanged at 5.25 per cent for the second straight month in October following 17 consecutive quarter point increases.
"The underlying strength in current labour market conditions suggests that our call for an easing of monetary policy by 50 basis points in the first quarter of 2007 is too aggressive," said Michael Carey, analyst at Calyon.
Meanwhile, the pound rose after Friday's strong PMI services survey, with the index rising to a six-month high of 59.3 in October from an unrevised 57.0 in September, beating predictions of a dip to 56.7.
The numbers will give the Bank of England further reason to raise interest rates next week.
The euro itself remains relatively well-supported after European Central Bank president Jean-Claude Trichet gave firm hints Thursday that eurozone interest rates would rise again in December.
The euro was changing hands at $US1.2705 against $US1.2776 on Thursday, ¥149.99 (¥149.66), £0.6683 (£0.6694) and 1.5947 Swiss francs (1.5911).
The US dollar stood at ¥118.10 (¥117.11) and 1.2555 Swiss francs (1.2450).
The pound was being traded at $US1.9011 (1.9084).
On the London Bullion Market, the price of gold climbed to $US622.75 per ounce from $US620.75 late on Thursday.
The single European currency in late-day trade was at $US1.2705 after $US1.2776 late Thursday in New York.
The US dollar was meanwhile trading at ¥118.10 against ¥117.11 on Thursday.
In Washington the Labor Department said the US unemployment rate fell to 4.4 per cent of the working population - the lowest since May 2001 - from 4.6 per cent in September.
The agency also revised up its estimate of job creation in the prior two months. It said 148,000 jobs were added in September, up from an estimate of 51,000, and 230,000 in August, instead of 188,000.
Only 92,000 jobs were created in October, well short of market predictions of 125,000, however.
"Today's non-farm payrolls temporarily suspended the bout of dollar selling seen this week amidst soft US data and hawkish comments from the European Central Bank," said Michael Woolfolk, currency strategist at Bank of New York.
For now, the improvement on the jobs front coupled with a higher than expected 0.4 per cent rise in average hourly wages have combined to diminish expectations that the US Federal Reserve will cut borrowing costs any time soon.
The Fed kept its key interest rate unchanged at 5.25 per cent for the second straight month in October following 17 consecutive quarter point increases.
"The underlying strength in current labour market conditions suggests that our call for an easing of monetary policy by 50 basis points in the first quarter of 2007 is too aggressive," said Michael Carey, analyst at Calyon.
Meanwhile, the pound rose after Friday's strong PMI services survey, with the index rising to a six-month high of 59.3 in October from an unrevised 57.0 in September, beating predictions of a dip to 56.7.
The numbers will give the Bank of England further reason to raise interest rates next week.
The euro itself remains relatively well-supported after European Central Bank president Jean-Claude Trichet gave firm hints Thursday that eurozone interest rates would rise again in December.
The euro was changing hands at $US1.2705 against $US1.2776 on Thursday, ¥149.99 (¥149.66), £0.6683 (£0.6694) and 1.5947 Swiss francs (1.5911).
The US dollar stood at ¥118.10 (¥117.11) and 1.2555 Swiss francs (1.2450).
The pound was being traded at $US1.9011 (1.9084).
On the London Bullion Market, the price of gold climbed to $US622.75 per ounce from $US620.75 late on Thursday.
posted by Sessilia at 5:19 AM
0 Comments:
Post a Comment
<< Home