Dollar Advances As Strong U.S. Jobs Data Boosts Fed Tightening Hopes

(RTTNews) – The US dollar strengthened against its major peers in the European session on Friday, as the country’s job growth beat expectations in September, raising hopes that the Federal Reserve will continue to raise interest rates aggressively in the coming months. Labor Department , data showed nonfarm payroll employment increased by 263,000 jobs in September, following an unadjusted gain of 315,000 jobs in August. Economists had expected employment to increase by 250,000 jobs. The unemployment rate fell to 3.5% in September from 3.7% in August. The unemployment rate is expected to remain unchanged. , Treasury yields jumped after the report, and the 2-year benchmark rose .31 percent. Yields move inversely with bond prices. Markets now sees a 79.6 percent chance that the Fed will raise interest rates by another 75 basis points in November. The greenback showed mixed trade against its main rivals in the Asian session. It rose against the pound and the franc, but was flat against the euro. It fell against the yen. , The greenback hit a nine-day high of 0.9953 against the franc at 0.9903 on Thursday. A rise in the currency could challenge resistance around the 1.00 level. . against the pound and touched a four-day high of 1.1091. The pound-green pair closed yesterday’s trading session at 1.1161. If the coin continues to rise, 1.08 may be its next high. , Survey data from Lloyds Bank Halifax branch showed that UK house price inflation slowed for the third consecutive month in September to an eight-month low. In September, the house price index rose by 9.9 percent year-on-year, which is slower than the 11. percent of the previous month. The greenback rose to an 8-day high of 0.9726 against the euro of 0.9790 yesterday. The coin is likely to find resistance around the 0.96 level. Data from Destatikens showed that German industrial output fell more than expected in August, as raw materials and supply chain bottlenecks continued to hamper activity in many industries. Industrial production fell 0.8 percent month-on-month in August after being flat in July. . The greenback rose to 1 5.35 against the yen, its highest level in more than two weeks. At the end of yesterday’s exchange, the pair was quoted at 1 5.13. The greenback may find resistance in the 1 9.5 area if it rallies again. Japan’s leading index improved in August for the first time in four months, according to preliminary data from the government agency. The main index measuring future economic activity rose from 98.9 points in July to a four-month high of 100.9 in August. Continuing the rally from the previous session, the dollar strengthened to a 9-day high of 0.6370 against the Aussie and a -day high of 0.5607 against the Kiwi. The greenback was at 0.6 08 against the Aussie and 0.5656 against the Kiwi at the end of Thursday. Resistance is seen around 0.60 for the Aussie and 0.53 for the Kiwi. On the other hand, the dollar fell against the loonie as strong Canadian jobs boosted it. It fell to 1.3675 against the loonie, from a four-day high of 1.3761 seen at 2:35 am. ET. The greenback was trading at 1.37 8 against the loonie after yesterday’s close. If the dollar continues to weaken, 1.33 is likely to be seen as its next support level. Data from , Statistics Canada showed the economy added more jobs than expected in September and the unemployment rate fell. Employment increased by 21,100 jobs in September, compared to expectations for an increase of 19,500 jobs. , US consumer credit for August will be released in the New York session.

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