Dollar Turns Higher Versus Euro Following Better-than-expected U.S. Data
Aug, 30th 13:07
The U.S. dollar rebounded on Wednesday, sending its European counterpart back down to the lowest level since last Friday. The pair EURUSD tumbled from two-and-a-half-year highs logged yesterday after data showed U.S. employments and growth rates were better than expected.
The currency pair lost more than 0.5 percent to trade at as low as $1.19100 per euro, paring earlier gains which had sent the pair to a high of $1.20692 – the level that had not been seen since early 2015. The dollar gained ground versus most of its peers after the Automatic Data Processing reported that U.S. private employers added 237,000 jobs in August.
The figure was well above economists’ expectations which called for a gain of 183,000 jobs.
Later in the week, the U.S. Labor Department will release its August nonfarm payrolls report at on Friday amid expectations that the data will show jobs growth of 180,000 in August, following an increase of 209,000 last month. The unemployment rate forecast to hold steady at 4.3% while average hourly earnings are expected to rise 0.2% after adding 0.3% a month earlier.
Besides data on U.S. job market, figures on second-quarter economic growth were also released. The Commerce Department reported that U.S. economic rose at 3% rate in the three-month period to June. The reading was revised up from an initial rate of 2.6% and marked the fastest quarterly growth rate in more than two years following a rise of 1.2% in the first quarter.
Stronger consumer spending was the main cause for the upward revision. Indeed, consumer spending was reported to jump at the rate of 3.3% last quarter, up from the government’s original estimate of a 1.9% gain.
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