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US Dollar Rallies as US Nonfarm Payrolls Up 227K

The US Dollar has soared across the board on the back of the prolific Nonfarm Payrolls. For the 17th consecutive month new people have been added to the payroll; private companies employed 233,000 new staff, while government organisations lost 6,000. The US Dollar Exchange Rate is trading almost a cent higher against the Pound Exchange Rate and almost 1.2 cents above the Euro Exchange Rate.

Average Hourly Earnings increased by 0.1% (MoM) and 1.9% (YoY). Average Weekly Hours remained flat at 34.5, and the Unemployment Rate held static at 8.3% despite the influx of new jobs. Analysts have predicted that unemployment could be headed lower in the near future (below 8.0% by November), which bodes well for US President Barack Obama, who faces an election later this year.

The persistent strength of the US Nonfarm Payrolls is an indicator of the underlying muscle of the US economy. 227,000 jobs were added improving on expectations of 210,000 and revisions to past months also showed considerable improvement with a further 61,000 jobs attributed to December and January. This leaves the past 3 months with an average job intake of 245,000.

The Pound to US Dollar Exchange Rate is currently trading at 1.569, while the Euro to US Dollar Rate is currently trading at 1.311. Poor Manufacturing data from the UK has weighed down Sterling whilst the reality of the Greek situation, post debt swap deal, has sent the Euro sliding. The commodity Aussie Dollar, Kiwi Dollar and Canadian Dollar have all posted gains close to a cent against the Pound and the Euro has suffered similar losses at the hands of AUD, NZD, CAD etc.

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