US Dollar Higher on Strong NFP Outcome, BUT, Can Rally Last?
Washington (July 3) The US dollar (USD) exchange rate complex is higher on Thursday following a strong showing in the much-watched US Non-Farm Payroll series.
Not since the start of 2000 has the US enjoyed such a run of job creation - and the miserable GDP performance of the start of the year is fast becoming a distant memory.
A look at the key dollar rates shows:
The pound to dollar exchange rate is 0.18 pct in the red at 1.7137.
The euro dollar exchange rate is 0.42 pct lower at 1.3602.
The US to Canadian dollar exchange rate is 0.12 pct higher at 1.0679.
PS: If you are holding out for higher rates, or want to lock in current rates for protection against further falls, we suggest setting up stop order / option with an independent FX provider. Learn how here.
Dollar recovers, but is the NFP enough to ensure ongoing strength?
The US economy added 288K jobs in the previous month, well ahead of analyst expectations for 212K, however forex traders have bought the dollar on the observation that June's surging rate of job creation was trumped by April's revised figure of more than 300,000.
Marcus Bullus, trading director of MB Capital, comments:
"Someone attached the jump leads to the US jobs market in June.
"After Wednesday's solid ADP number, we were quietly optimistic that today might be the big one. It was.