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Greenback Surges After ADP Jobs Report

December 2, 2015 at 14:25 by Miranda Marquit

Ulysses S. Grant on US 50-dollar billThe latest ADP jobs report is solidifying expectations that the Federal Reserve will raise rates at its meeting in two weeks. With large gains for November and an upwardly revised report for October, many feel that the job growth is steady enough to support the economy.

A report released by ADP indicates that private-sector jobs grew by 217,000 in November, while the October number was revised upward to 196,000. Analysts say that this job growth is an indication that the economy is in recovery mode.

Policymakers at the Federal Reserve have long indicated that solid job growth is needed before they raise rates. It looks as though there has been steady growth for some months now, and there are indications that Janet Yellen will announce a rate hike following the FOMC meeting in two weeks.

The dollar is surging as a result of the news and the expectations. The only damper on the party right now is likely to be the pacing of subsequent rate hikes.

At 14:22 GMT the US dollar index is up to 100.190 from the open at 99.830. EUR/USD is down to 1.0594 from the open at 1.0632. GBP/USD is down to 1.5001 from the open at 1.5081. USD/JPY is up to 123.3120 from the open at 122.8700.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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