USD/JPY jumps to two-month high on U.S. Jobs data

The dollar climbed to its highest level in nearly four months on Friday after data showed the world’s largest economy created jobs at a solid pace last month, further bolstering expectations the U.S. Federal Reserve will raise interest rates next month.

The greenback posted two-month highs against the yen and nearly five-month highs versus the Swiss franc following a U.S. employment headline number that was slightly below the consensus forecast, but nonetheless depicted a strengthening labor market.

U.S. nonfarm payrolls increased 215,000 last month, compared with market expectations for a rise of 223,000 jobs, but upward revisions to the previous months and a gain in average hourly earnings were viewed positively by investors.

Today’s figure strengthens the case for an interest rate hike in September as the U.S. economy remains in a healthy.

The dollar index rose as high 98.334, the highest since April 23. Against the yen, the dollar touched two-month peak above 125 yen. The euro, meanwhile, was down 0.4 percent against the dollar at $1.0876.

Against the Swiss franc the dollar hit 0.9885 franc, the highest since March 20. It last traded up 0.6 percent at 0.9868 francS.

Sterling fell to a three-week low, on track for its biggest weekly loss against the dollar since late May, due to the stronger dollar and also as expectations of an interest rate hike by the Bank of England were pushed back to the first quarter of 2016.

The post USD/JPY jumps to two-month high on U.S. Jobs data appeared first on Forex Circles.

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