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The U.S. dolar rose today against a basket of major rivals so far this year after a strong U.S. July payrolls report. America’s economy has beaten expectations by creating 209,000 new jobs in July. June's employment gain was revised up to 231,000 from the previously reported 222,000, while average hourly earnings increased 0.3 percent to match expectations after rising 0.2 percent in June. An upbeat Non-Farm Payroll report also showed the jobless rate has fallen to 4.3%, while annual wage growth remained at 2.5%.
The outlook for a December rate hike remained uncertain
"The dollars strength is a combination of strong payrolls, of this news on the repatriation front, and positioning," said for CNBC, Alvise Marino, FX strategist at Credit Suisse in New York. The dollar has suffered in recent months on increased doubts that the Federal Reserve would raise interest rates again this year and obstacles to U.S. President Donald Trump's pro-growth agenda. The real economy remains on a strong growth path at the start of the third quarter. The outlook for a December rate hike remained uncertain at this moment, despite the jobs data. If the labour market continues to tighten in the next months, the Fed will raise rates again later this year.

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