Dollar Jumps vs. Yen on Employment Data
The US dollar was little changed against the euro and jumped versus the Japanese yen after the US unemployment rate unexpectedly fell, while employment grew in line with analysts’ forecasts. Now, traders speculate what impact the data may have on Federal Reserve’s policy.
The unemployment rate dipped from 8.1 percent in August to 7.8 percent in September. That was a pleasant surprise as specialists have feared that the rate would go up to 8.2 percent. Non-farm payrolls demonstrated growth by 114,000 last month, matching the forecast. The August increase was revised upward from 96,000 to 142,000. The positive data decreased demand for a safe haven, weakening the yen. Additionally, good employment growth means that there is less incentive for the Fed to add more stimulus.
EUR/USD was near the opening of 1.3016 as of 12:45 GMT today. USD/JPY, which was initially steady, climbed from 78.46 to 78.76, rebounding from the daily low of 78.26.
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