Dollar Climbs Back As US Jobless Rate Falls To New Six-year Low
Brussels (Nov 7) The US dollar rose back against its major rivals on Friday, as US jobless rate fell to a new six-year low in October and economy created 200,000 jobs or more for nine straight months.
The Labor Department report showed that non-farm payroll employment rose by 214,000 jobs in October following an upwardly revised increase of 256,000 jobs in September.
Economists had expected employment to climb by about 235,000 jobs compared to the addition of 248,000 jobs originally reported for the previous month.
The continued job growth pushed the unemployment rate down to 5.8% in October from 5.9% in September.
The data points to continued strength of the economy and also supported the case for higher borrowing costs.
The jobless claims fell more-than-expected last week, a Labor Department report showed yesterday. The data, which came a day after strong private sector payroll report for October, reinforced confidence on the strength in labour market.
The Fed Reserve in its recent statement indicated that faster rate of improvement and higher inflation in the economy would bring forward its timing of rate hike.
The greenback firmed to 0.9741 against the franc, its highest since July 2013 . At yesterday's close, the pair was worth 0.9731. The next possible upside target for the greenback lies around the 0.98 zone.
Switzerland's jobless rate remained unchanged again in October, data from the State Secretariat for Economic Affairs showed.
The unemployment rate held steady at seasonally adjusted 3.2% in October. The rate came in line with economists' expectations.
The greenback climbed back against the yen, lying within the vicinity of its recent 7-year high of 115.57. If the greenback extends its uptrend, 116.00 is seen as its next possible resistance level.
The greenback rose back to more than a 2-year high of 1.2357 against the euro shortly after the data. Next key resistance for the greenback is likely be found near the 1.22 mark.
Germany's industrial production grew less than expected in September, but it recovered from a decline seen in the prior month, data from Destatis revealed.
Industrial production expanded 1.4% in September from August, when it fell by 3.1%. Economists had forecast a 2% rise for September.
The greenback that ended yesterday's trading at 1.5829 against the pound spiked up to a 14-month high of 1.5789. Further bullish extension may lead the greenback to a resistance around the 1.575 region.
The UK visible trade deficit widened more than expected in September, data from the Office for National Statistics showed.
The visible trade gap increased to GBP 9.8 billion in September from GBP 9 billion in August. The deficit was forecast to rise moderately to GBP 9.5 billion .
At about 10:15 am ET , Yellen is due to participate in a panel on monetary policy since the onset of the financial crisis. The panel will also include the ECB's Benoit Coeure, Bank of India Governor Raghuram Rajan , Bank of Mexico Governor Agustin Carsens , and IMF chief Christine Lagarde .
Source: RTTnews
