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Forex - Dollar Holds Onto Gains, U.S. Jobs Data Supports

Published 12/06/2017, 10:50 AM
© Reuters.  Dollar remains broadly higher after upbeat ADP report
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Investing.com - The dollar remained higher against other major counterparts on Wednesday, helped by the release of upbeat U.S. employment data.

The greenback strengthened after data showed that the U.S. private sector added 190,000 jobs in November.

The dollar was already supported since the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.

Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace.

Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan.

However, investors grew a little more cautious due to the possibility of a U.S. government shutdown if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.29% at 93.54 by 10:50 a.m. ET (14:50 GMT).

EUR/USD slipped 0.28% to 1.1792, while GBP/USD declined 0.47% to trade at 1.3380 amid ongoing Brexit concerns after the UK and the European Union failed to reach an agreement to move to the next stage of negotiations.

Elsewhere, the yen remained higher, with USD/JPY down 0.31% at 112.25, while USD/CHF rose 0.24% to 0.9897.

The Australian dollar was weaker, with AUD/USD down 0.54% at 0.7567, while NZD/USD held steady at 0.6876.

Meanwhile, USD/CAD advanced 0.58% to 1.2761 after the Bank of Canada held interest rates steady at 1.0%, as expected.

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