The US Dollar managed to recover some ground against the Pound and Euro following the release of data which increased expectations that the Federal Reserve will begin scaling back its monetary easing programme.
The ‘Greenback’ also made gains against the Japanese Yen following the publication of jobs data which exceeded expectations. According to the Labour Department, payrolls increased by 203,000 in November. The figure beat economist forecasts for a rise to 180,000.
The data meant that the overall unemployment rate in the world’s largest economy fell from October’s level of 7.3% to a five-year low of 7% in November. Many of the November job gains were in higher-paying industries. Manufacturers added 27,000 positions, the most since March 2012. Construction firms gained 17,000. The two industries have created a combined 113,000 jobs in the past four months.
In a separate report consumer spending in the US climbed more than forecast in October adding further signs that the US economy is getting back on track.
According to the Commerce Department consumer spending climbed more than forecast adding to signs that the biggest part of the US economy is picking up. Household purchases which make up 70% of the economy managed to climb by 0.3%.
As a result of the data releases investors increased their bets that the Federal Reserve could begin to taper its quantitative easing programme sooner than March next year.
“For me, the jobs situation is strong enough to taper, or at least strong enough to signal a January taper,” said a forex trader.
The Pound managed to hold steady against the US currency after it found support from data which showed that house price inflation in the UK climbed by 1.1% in November, beating expectations for an increase of 0.6%.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6110
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7313
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0648
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6366
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3674
(Correct as of 14:45 pm GMT)
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