Forex News: U.S. Dollar Higher After Solid Jobs Data

U.S. Dollar Higher After Solid Jobs Data

(RTTNews) - The U.S. dollar firmed against its most major counterparts in the New York session on Friday, as stronger-than-expected jobs data for November reinforced the odds of a Federal Reserve rate cut later this month.

Data from the Labor Department showed that non-farm payroll employment shot up by 227,000 jobs in November after rising by an upwardly revised 36,000 jobs in October.

Economists had expected employment to jump by 200,000 jobs compared to the uptick of 12,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate crept up to 4.2 percent in November from 4.1 percent in October. The modest increase matched economist estimates.

Market participants currently expect the Fed to lower rates by another 25 basis points at the December meeting, but there remains considerable uncertainty about the likelihood of continued rate cuts at future meetings.

The greenback edged up to 1.2725 against the pound and 1.0543 against the euro, from its early more than 3-week lows of 1.2811 and 1.0629, respectively. The next possible resistance for the currency is seen around 1.24 against the pound and 1.04 against the euro.

The greenback recovered to 0.8783 against the franc, from an early 4-week low of 0.8733. The currency is likely to locate resistance around the 0.89 level.

The greenback climbed to a fresh 4-month high of 0.6383 against the aussie and a 10-day high of 0.5826 against the kiwi, from an early 2-day low of 0.6455 and a 3-day low of 0.5889, respectively. The currency is poised to challenge resistance around 0.62 against the aussie and 0.56 against the kiwi.

The greenback touched 1.4156 against the loonie, setting a 10-day high. If the greenback rises further, it is likely to test resistance around the 1.43 region.

In contrast, the greenback weakened to a 3-day low of 149.35 against the yen. The currency is seen finding support around the 146.00 level.

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