USD peaked seven months after US jobs report

USD peaked seven months after US jobs report

The dollar jumped to its highest level in seven months on Friday and oil prices push bond yields while short term rose to its highest level in 5 years when the US jobs report increased expectations that Fed will raise interest rates in December.

 

The US Labor Department said the number of US jobs has increased by 271 000 in October, marking the biggest monthly increase since May 12/2014 while average hourly earnings increased 9 cents. In addition, the unemployment rate fell to 5%, the lowest level since March 4/2008 and within that according to the investor's labor market has been completely restored.
Report better employment expectations increased ability to raise interest rates before the Fed will at the end of the year, raised interest rates first time in almost a decade and ended seven years of applying monetary easing policy.
The dollar index, a measure of the evolution of the dollar against six other major currencies, up to 99,345, the highest level since mid-April before narrowing gains 1.26% and was trading at 99,170.
Kathy Lien, CEO BK Asset Management in New York, said: "We are about to witness a renewed interest for the dollar."
The euro fell the most since April mucthap at $ 1,078 before shortening decline to 1.31% and trading at 1.0738 USD.
For the yen, the dollar rose to its highest level since the day 21/08 at 123.26 JPY traded at 123.21 JPY, increased movements 1:21% in recent transactions.
Meanwhile, crude oil prices on 3 consecutive days and saw the 3rd week decline in the past four weeks due to a stronger dollar makes commodities prices follow greenback anchored becomes more expensive for holders kept in other currencies.
Contract December Brent crude on ICE Futures lost 56 cents (1.2% respectively) to 47.42 USD / barrel, lower by 4% compared to last week's closing level. Light sweet crude contract on the Nymex delivery in December (WTI) fell 91 cents (equivalent to 2%) closed the session at 44.29 USD / barrel, the lowest close since the day 27/10. For the whole week, WTI fell 4.9%.
Yields on US government bonds soared to 2-year yields hit their highest level since January 0958% 5/2010 in previous Fed rate hike expectations. Treasury bond yields hit 10-year high at 2,349% in 3 months.
The global stock markets closed mixed with European stocks rally but stock index MSCI World went down.
                                                                                                                                       Phuoc Pham (Reuters)

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