US dollar is heading higher today, gaining ground, thanks to a jobs boom for the month of June. The latest nonfarm payrolls report from the US government shows expansion, as well as a drop in unemployment. The good news is pushing the dollar higher on expectations that the Federal Reserve will soon have to end easing sooner rather than later.
The employment situation in the United States appears to be improving. According to the Labor Department, nonfarm payrolls added 288,000 jobs in June. Not only that, but the unemployment rate dropped to 6.1 per cent, which is the lowest jobless rate since the financial crisis. Reports also indicate that average hourly wages rose by 6 cents, and wages are up over the last 12 months.
Thanks to the news, the US stock market is surging, and the Dow is above 17,000. Additionally, there is speculation that the Federal Reserve will soon have to reduce its efforts to stimulate the economy. This speculation is fueling gains for the greenback today in Forex trading.
At 14:00 GMT the US dollar index is higher, up to 80.2540 from the open at 79.9500. EUR/USD is lower, dropping to 1.3607 from the open at 1.3659. GBP/USD is down to 1.7147 from the open at 1.7166. USD/JPY is up to 102.2320 from the open at 101.7720.
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