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Dollar pushes higher on strong U.S. employment data

Published 09/30/2015, 08:27 AM
© Reuters.  Dollar extend gains vs. rivals as U.S. jobs data supports
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Investing.com - The dollar pushed higher against the other major currencies on Wednesday, after data showed that U.S. non-farm private employment rose more than expected in September and as investors eyed a speech by Federal Reserve Chair Janet Yellen scheduled later in the day.

The dollar was higher against the yen, with USD/JPY up 0.41% at 120.23.

Payroll processing firm ADP said U.S. non-farm private employment rose by 200,000 this month, above expectations for an increase of 194,000.

The economy created 186,000 jobs in August, whose figure was downwardly revised from a previously reported increase of 190,000.

Investors awaited comments by Fed Chair Janet Yellen due later in the day after mixed messages from several U.S. central bank policymakers last week led to uncertainty over whether the Fed will raise short term interest rates this year.

New York Fed President William Dudley and San Francisco Fed head John Williams indicated support for a rate hike in 2015 in separate speeches on Monday, but Chicago Fed President Charles Evans said rates should remain on hold until mid-2016.

The dollar was also higher against the euro, with EUR/USD dropping 0.51% to 1.1191.

The single currency came under pressure after Eurostat, the statistical body of the European Union, reported that the annual rate of inflation in the single currency bloc fell by 0.1% this month, compared to forecasts for a flat reading.

It was the first time in six months that the region saw declining inflation.

Another report showed that the euro zone unemployment rate remained unchanged at 11.0% in August.

Elsewhere, the dollar trimmed losses against the pound, with GBP/USD still up 0.10% at 1.5165, and pushed higher against the Swiss franc, with USD/CHF rising 0.32% to 0.9750.

Sterling found support after data showed that U.K. gross domestic product expanded at a rate of 0.7% in the three months to June, meeting forecasts and unchanged from a preliminary estimate.

Year-over-year, U.K. economic growth expanded by 2.4% in the second quarter, down from an initial estimate of 2.6%.

The Australian and New Zealand dollars remained stronger, with AUD/USD up 0.45% to 0.7017 and with NZD/USD adding 0.24% to 0.6362.

Meanwhile, USD/CAD held steady at 1.3419, off session lows of 1.3389.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.33% at 96.38.

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