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October Jobs in US bump dollar higher
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The dollar moved sharply higher against the euro on news of a fall in the US unemployment rate and the upward revision of job creation figures for August and September.
Only 92,000 jobs were created in October, well short of market predictions of 125,000, however.
For now, the improvement on the jobs front coupled with a higher than expected 0.4 percent rise in average hourly wages have combined to diminish expectations that the US
Federal Reserve will cut borrowing costs any time soon.
The Fed kept its key interest rate unchanged at 5.25 percent for the second straight month in October following 17 consecutive quarter point increases.
So why..? Essentially in lay terms, when the emplyment market looks rosey, that means there is more jobs, more jobs = more investment, more invetment = more demand for American currency, more demand = less supply, less supply = increase in dollar. That's pretty basic but you get the idea.
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Admin
Admin
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Nov 7, 2006, 8:31 PM
Post #1 of 1
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