- November 3, 2018
- Posted by: Trading
- Category: News
Investing.com – The dollar rose against its rivals Thursday after data showed the U.S. economy created more jobs than expected last month, strengthening the Federal Reserve’s case to continue gradually raising rates.
The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.31% to 96.57.
The Labor Department said Friday employment increased by 250,000 jobs in October, beating economists’ estimates for 193,000 new jobs. While the was unchanged at 3.7%.
rose 0.2% month on month and 3.1% for the year through October, in line with economists’ forecasts.
The better-than-expected jobs data keeps the Fed on track for another hike in December, leading to a tightening cycle that could slightly overshoot the neutral rate over time, TD Securities said.
“The data offers a boost to the dollar, though we think markets will be cautious to push this narrative with positioning stretched and event risk related to the US mid-terms next week,” it added.
The dollar held firm against safe-haven yen despite a selloff on Wall Street as investors fretted about U.S.-China trade tensions. White House economic advisor Larry Kudlow refuted reports that President Donald Trump had asked his Cabinet to put together a trade deal with China.
rose 0.39% to Y113.16.
fell 0.43% to $1.2957, but remained on course for its best week since March on the back of a strong rise Thursday, when the Bank of England signaled more interest rate hikes could be on cards if Britain’s exit from the European Union is smooth.
, meanwhile, rose 0.18% to C$1.3109 as slump in oil prices and soft jobs data from Canada kept a lid on the oil-price-sensitive loonie.
fell 0.20% to $1.1385
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