2023-12-11 08:32:36
The dollar index opened weekly trading with an increase, maintaining its gains recorded during last week’s trading with successive economic data, especially on the level of jobs in the United States of America. The strongest data released was for the non-agricultural jobs sector, which recorded numbers higher than expected, a reflection of the continued strength of the labor market, which has returned to recovery again after declines during the past months of October and September. Data showed non-farm payrolls rose by 199,000 jobs in November, compared to expectations of 185,000. The largest increase in these jobs was recorded in the health care sector, as well as employment and manufacturing, especially with the return of auto factory workers who ended their strike, coinciding with the end of the labor dispute in the city of the Hollywood film industry.
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At the same time, other data revealed that the unemployment rate fell to a four-month low of 3.7%, which is lower than previous market expectations. While weekly working hours recorded an increase in reflection of increased demand. This came in conjunction with an increase in average wages of 0.4% per hour compared to the previous month’s figures.
The data represents a reflection of the slowdown recorded in labor markets over the past months, which prompts the Federal Reserve to tighten its tone and monetary policy directions in its effort to control inflation and spending after a period of calm. This is at a time when the markets are preparing for the Federal Open Market Committee meeting next Tuesday and Wednesday to approve the US interest rate, which most likely indicates stabilizing the interest rate at its highest level in 22 years at 5.5 percent.
While a rise in the US inflation rate, or recording any further increase in jobs data during the month of December, may complicate the markets’ calculations, which had expected an early shift away from the restrictive policy that the Federal Reserve has followed over a year and a half in early 2024.
The spot dollar index rose 0.15% to record 104.1347 points. The euro also fell against the dollar by 0.03%, as the euro traded against the dollar at 1.07604, and the pound sterling fell against the dollar by 0.07%, reaching 1.25387. This is at 08:03 AM GMT.
The US dollar rose against the Japanese yen by 0.82%, with the pair trading at 146.1760. The US dollar also rose against the Canadian yen by 0.02%, trading at 1.35903. The New Zealand dollar fell against the US dollar by 0.26%, reaching levels of 0.61055. Finally, the US dollar stabilized against the Swiss franc without change. To reach 0.87981.
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