US Dollar Looks Ahead to September Jobs Report After Strong Week of Data

The  US dollar is continuing to  post incredible gains against several currencies on  Thursday after an  impressive week of  domestic economic data and  global developments. The  greenback will now look ahead to  the  September jobs report on  Friday, which is expected to  come in  strong.

According to  the  Institute for  Supply Management (ISM), business activity in  the  non-manufacturing sector is firing on  all cylinders as  it expanded at  a  faster pace in  September compared to  the  previous month. The  Purchasing Managers’ Index (PMI) swelled to  61.6 from 58.5, beating the  market forecast of  58 and  reaching its best level since April 2006
Other key aspects of  the  report saw the  Non-Manufacturing Business Activity Index jumped to  65.2%, the  New Orders Index advanced to  61.6%, the  Employment Index ballooned to  62.4%, and  the  Prices Index rose to  64.2%
Last month, private-sector employment skyrocketed, reports Automatic Data Processing (ADP) as  employers added 230,000 jobs, the  highest hiring rate since February, beating the  market forecasts of  179,000.
The  news helped the  equities market post new highs, leading President Donald Trump to  tweet: “Blowout numbers on  New Jobs, and, separately, Services. Market up!”
Speaking in  an  interview with PBS host Judy Woodruff on  Wednesday, Federal Reserve Chair Jerome Powell suggested that the  central bank is ready to  raise interest rates even higher and  that it might go past neutral.

The  really extremely accommodative low interest rates that we needed when the  economy was quite weak, we don’t need those anymore. They’re not appropriate anymore.

Interest rates are still accommodative, but we’re gradually moving to  a  place where they will be neutral. We may go past neutral, but we’re a  long way from neutral at  this point, probably.

The  remarks have helped Treasury notes as  the  10-year Treasury note yield surged 0.16% to  a  seven-year high of  3.19%.
While the  US Dollar Index has taken a  hit of  0.2% to  95.80, the  buck has gained against its counterparts.
The  USD/CAD currency pair rose 0.42% to  1.2925, from an  opening of  1.2868. The  EUR/CAD climbed 0.24% to  1.1508, from an  opening of  1.1479.

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