Strong U.S. jobs report boosted the greenback, encourages Fed’s interest rate hike view

Apple’s anticipated earnings pushed Nasdaq

The firm stance of the U.S. dollar last Friday, accompanied by the report which indicated an unanticipated bigger job increase in the United States that kept the Federal Reserve on track and made the Fed suggested another interest rate hike later this year; the greenback remained strong this Monday.

In accordance to this, the data shown on Friday presented U.S. non-farm payrolls which advances for up to 222,000 last June, the data also indicated employers increasing hours for employees. On the other hand, after being reviewed, the data for the month of April and May showed 47,000 created jobs which were a bit higher than previously reported.   

This report suggested the Federal Reserve to keep its trimming plans for the rest of the year. Charlie Ripley, investment strategist at Allianz Investment Management in Minneapolis said in an interview on Friday that the U.S. job report will increase the Fed’s resolution to begin its balance sheet reduction sooner than later, and that the solid employment data should keep the Fed stabilized. 

In addition, Mitsuo Imaizumi, Tokyo-based chief foreign exchange strategist for Daiwa Securities, said that the solid job report gave them more reason to expect the Federal Reserve to proclaim the start of trimming its balance sheet.

Against a group of its major currency rivals, the dollar index was steady at 96.012 from 96.0132.DXY last Friday; this result is also accompanied by the U.S. data which showed a massive job increase for the month of June and the previous month. In addition, the dollar was 0.2$ higher that the safe-haven yen at 114.16 JPY=, the euro—on the other hand, also slipped down to $1.1404 EUR=.


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