Dollar surges, gold crashes after strong US nonfarm payrolls

A strong U.S. nonfarm payrolls report showing 271,000 jobs were created last month bolstered the US dollar against its rivals, including the yen and the euro.

USD/JPY remains bid on December Fed hike expectations, and is eyeing 123.50 yen.

EUR/USD opened in Asia at 1.0735 after sliding 1.35% on Friday post-US NFP. The fact the Fed and ECB are on different monetary policy paths is more certain after the U.S. jobs data. UER/USD dipped to 1.0720 early in Asia.

The sharp jump in the US dollar after the payroll report didn’t help matters either as strength in the greenback makes the dollar-denominated commodity more expensive for foreign buyers.

Gold fell 1.6 per cent to $1086.78 an ounce after a stronger-than-expected October US jobs report lifted the possibility of that the Federal Reserve will raise rates at its December meeting.

Odds that the Fed will lift rates for the first time since the financial crisis before the end of the year climbed to over 70 per cent after the data was released.

Friday’s decline put gold down for its eighth straight session — its longest losing streak since March. The yellow metal is down more than 8 per cent so far this year.

The post Dollar surges, gold crashes after strong US nonfarm payrolls appeared first on Forex Circles.

Source:: Dollar surges, gold crashes after strong US nonfarm payrolls

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