Dollar Tests Six-Month High as Jobs Cloud Fed Cut
The dollar traded slightly stronger after the delayed September jobs report failed to bring clarity on the Federal Reserve’s December interest-rate cut. Ahead of the data on Thursday, a dollar gauge touched a six-month high.
The Bloomberg Dollar Spot Index rose 0.1% on Thursday after choppy trading earlier
The Bureau of Statistic’s report showed nonfarm payrolls jumped 119,000 in September after declining in August. Jobless rate rose to 4.4%
Morgan Stanley’s economists are no longer expecting the Fed to cut rates in December. They cited that the bounce back in payrolls for September lowers the risk of a higher unemployment rate.
“We believe the rebound in payrolls, combined with the absence of October employment data, will keep the Fed on hold in December,” they wrote.
“The data was good and will support ‘many participants’ on the FOMC looking to keep the target range unchanged for the rest of the year,” said Elias Haddad, a strategist at Brown Brothers Harriman.
USD/JPY rose 0.3% to 157.60
Pair rose for a fourth day and is in oversold territory
GBP/USD up 0.1% to 1.3075
UK consumer confidence tumbled in November, the British Retail Consortium said, as government hints about higher income tax in this month’s budget caused people to worry about the economy and their personal finances.
AUD/USD fell 0.5% to 0.6446
Source : Bloomberg.com
