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US Dollar Jumps on Strong January Jobs Report

February 7, 2020 at 13:49 by Andrew Moran

A rolled $100 note with many $100 notes on the backgroundThe US dollar is soaring against many major currency rivals to close out the trading week, driven by a better-than-expected January jobs report. This comes as the US economy enjoyed a plethora of positive numbers this week that have made investors question if the slowdown is as prevalent as analysts say it is.

According to the Bureau of Labor Statistics (BLS), the US economy added 225,000 jobs in January, up from an upwardly revised 147,000 in the previous month. The market had forecast a gain of 160,000. The unemployment rate edged up 0.1% to 3.6% as more people entered the workforce.

The report also revealed that average hourly earnings rose 0.2% to $28.44, average weekly hours were unchanged at 34.3, and the labor force participation rate advanced 0.2% to 63.4%.

Last month, government payrolls climbed 19,000 while manufacturing employment shed 12,000.

January’s jobs report highlights a robust labor market. The employment situation continues to remain strong as the rest of the economy experiences a modest slowdown, which may be reversing according to the recent data dump. Can the good times remain the same throughout the rest of the first quarter?

Earlier this week, a myriad of metrics highlighted a strong end to 2019 and a great start to 2020. Annual productivity climbed, initial jobless claims fell, the Institute for Supply Management’s (ISM) manufacturing and non-manufacturing readings came in better than anticipated, and the annual US trade deficit declined for the first time in six years.

The US Dollar Index jumped 0.1% to 98.58, from an opening of 98.46. The greenback is poised for a weekly gain of 1.18%, lifting its year-to-date surge to about 2.23%.

The USD/CAD currency pair rose 0.08% to 1.3296, from an opening of 1.3284, at 12:41 GMT on Friday. The EUR/USD tumbled 0.19% to 1.0962, from an opening of 1.0982.

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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