The latest payrolls data out of the United States prompted a surge in the greenback, and right now the US dollar appears to be consolidating after its gains. Even though the dollar index is weaker today, there are many that expect more dollar strength to come.
The latest NFP data, for September, showed an increase of jobs to the economy, and the unemployment rate dropping to below 6 per cent for the first time in six years. The news has prompted a resurgence in the dollar, since many are certain that the Federal Reserve will have to act to tighten policy.
Today, the greenback is down pretty much across the board, probably on profit taking as the dollar consolidates. Oil prices and gold prices are lower, though, and there are indications that the dollar is likely to experience overall strength in the coming weeks, thanks to its recovering economy and policy divergence with other major economies.
At 10:42 GMT the US dollar index is down to 86.4010 from the open at 86.6590. EUR/USD is higher, moving up to 1.2556 from the open at 1.2515. GBP/USD is also moving higher today, gaining to 1.5986 from the open at 1.5958. USD/JPY is a little bit lower, dropping to 109.3320 from the open at 109.7840.
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