Currency Note US Dollar

US Dollar buoyed by positive employment data

By Ricky Bean December 4th, 2014

The US dollar had a mostly positive day, although it lost ground against an even better performing sterling. The dollar reached its strongest level since August 2012 against the euro, while also extending its seven-year highs against the Japanese yen, thanks to further encouragement from the US economy.

Despite missing its expected level, the independent non-farm employment change figure helped the dollar as it showed that the economy added over 200,000 jobs for the seventh out of the last eight months. The US currency’s performance was also aided by the non-manufacturing Purchasing Managers’ Index (PMI) figure, which showed better-than-expected expansion in this sector.

Today holds just a single piece of significant data from stateside. This will again come from the labour market, as the overall unemployment claims figure is released. Aside from this, there are just words from another member of the Federal Open Market Committee (FOMC) to potentially impact the markets, as investors continue to speculate and look for clues regarding potential interest rate rises in the US.