U.S. Dollar Rallies After JOLTS Job Openings Jump More Than Expected, Gold Tumbles
Aug, 08th 14:48
The U.S. dollar jumped sharply versus all of its major rivals after data showed the number of job openings in the U.S. rose much more than expected in June. The surge in the greenback weighed the price of gold back down the lowest level in nearly two weeks.
Indeed, the precious metal plunged to as low as $1254.00, down more than 0.6 percent on the back of the release of the monthly Job Openings and Labor Turnover Survey on Tuesday. The U.S. Labor Department reported that the number of job openings, excluding the farming industry rose to 6.163 million in June from 5.702 million a month earlier. May’s figure was revised upwards from the original reading of 5.666 million.
June’s reading did not only mark a fresh record but also easily smashed analyst’ forecast calling for an increase to 5.775 million in the number of job openings. The dollar was supported after the data release as it bolstered optimism over an improving U.S. labor market where employers actively seek workers.
Meanwhile, hiring decreased, reflecting the fact that companies are having trouble finding employees with enough skills. As a result, wages are expected to be raised, which would boost spending and send inflation towards the central bank’s target of 2%.
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