Yahoo Finance Forex: Dollar Surges Against Euro on Stronger U.S. Jobs Report
Investing.com – The U.S. dollar rallied on Friday as stronger-than-expected U.S. jobs gains last month reaffirmed beliefs that the economy remained on solid footing.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.35% to 97.75.
The U.S. created 266,000 jobs last month, topping economists' forecast of 186,000.
The unemployment rate unexpectedly dropped to 3.5% and wage growth slipped to 0.2% in November, lower than expectations of 0.3%.
Following the stronger-than-expected jobs report, TD economists said the Federal Reserve can sit comfortably on the sidelines after cutting rates three times this year.
"As long as international risks do not intensify and hurt confidence domestically, the American economy will remain in expansion, supported by a healthy consumer," the firm added.
The euro, which was already under pressure amid weaker German data, fell 0.45% against the greenback to $1.105.
USD/JPY fell 0.12% to Y108.62, while USD/CAD jumped 0.67% to C$1.326, with the latter coming under pressure following a weaker-than-expected Canadian jobs report.
The plunge in the loonie comes amid reports that Bank of Canada governor Stephen Poloz is set to step down just days ahead of the central bank's interest-rate decision.
GBP/USD slipped 0.23% to $1.312, giving up some of its gains earlier this week, when the pair hit seven-month highs on bets that the Conservative party in the U.K., led by Prime Minister Boris Johnson, would likely win a majority of the seats in the General Election.
With a Tory majority, Boris Johnson will likely be able to get his Brexit deal approved, ending the current parliamentary deadlock on Brexit, which has weighed on economic activity.
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