non-farm payrolls increased by 315,000 jobs in August, according to the data, beating the 300,000 consensus forecast of economists polled by Reuters and marking the 20th straight month of job growth.
The dollar indexwhich compares the greenback to a basket of six prominent currencies, was volatile after the jobs report, in operations with low volumes of business before the long weekend in the US
The US currency fell a minimum 0.064% to 109.52but anyway marked an increase of 0.6% in the week, in third consecutive weekly gain.
“Uneven non-farm payroll data was an excuse to take profits as the dollar advanced to 20-year highs,” said Joe Manimbo, senior market analyst at Convera.
The dollar renewed a 20-year high on Thursday at 109.99 and it’s gone up a lot since the Fed chairman, Jerome Powellsaid last Friday that rates will have to be high “for some time” to combat inflation.
Fed funds futures were unchanged after the jobs report and vThey estimate a 75% chance that the Fed will raise rates by 75 basis points this month, according to Refinitiv data.
The euro gained 0.21%, partially recovering from the previous day’s losses against the US currency, but remained below parity at $0.9965.
The European Central Bank is due to meet next week and money markets are betting on an unprecedented 75 basis point increase in the interest rate.
Against the rate-sensitive Japanese yen, the dollar was up 0.04% at 140.125 yen. On the eve, the dollar broke above 140 yen for the first time since.
Source: Ambito
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