Greenback jumps after strong US payrolls report
For the week, the US dollar is up 0.3%, while the euro sheds 0.1%
The US dollar experienced a significant jump on Friday (Nov 6), potentially marking its largest daily percentage gain in nearly five months. This surge was fueled by a stronger-than-anticipated American payrolls report, which reinforced anticipations of an interest rate increase from the Federal Reserve in the upcoming month. According to the Labor Department, US nonfarm payrolls rose by 165,000 jobs last month, surpassing the 65,000 estimate predicted by economists surveyed by Reuters.
Notably, this figure was an upward revision from the 60,000 gain reported in September. The unemployment rate decreased to 4.1 percent. The improved economic outlook presented the Fed with the opportunity to continue raising interest rates. Anticipations of a minimum 25 basis point hike at the Federal Reserve's December meeting rose back to 80 percent following the report, as indicated by the CME FedWatch Tool.
The US dollar index, which gauges the greenback's performance against a basket of currencies, surged 0.77 percent to 102.26, while the euro fell 0.67 percent to US$1.11437. The US dollar index experienced its biggest daily percentage gain since June 17, while the euro underwent its largest daily drop since October 1. Throughout the week, the US dollar increased by 0.3 percent, and the euro declined by 0.1 percent, positioning itself for a third consecutive weekly loss.
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