Dollar Explodes to Upside After NFP

The US dollar surged today after non-farm payrolls came out even better than optimistic expectations, while positive trade data added to the upside momentum. The greenback reached a new multi-year high against the euro and the lowest level in almost 11 months against the Great Britain pound.
US employers added 248,000 jobs in September compared to the median analysts’ forecast of 216,000. The disappointing August figure of 142,000 was revised positively to 180,000. The unemployment rate unexpectedly ticked down from 6.1 percent to 5.9 percent.
While traders were counting on good employment data, the overwhelming positiveness of the actual report was still a surprise that allowed the dollar to jump to new highs. The trade balance report added to optimism of dollar bulls as the trade deficit shrank a little, not widened as was expected by economists.
EUR/USD dropped 1 percent to 1.2545 as of 13:08 GMT today, while its daily low of 1.2517 was weakest since September 2012. GBP/USD slid from 1.6143 to 1.6022, trading near the lowest level since November 2013. USD/JPY climbed 1 percent to 109.36.

If you have any questions, comments or opinions regarding the US Dollar,
feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *