Dollar increases in quiet trading

07.12.2015

On Monday, in quiet trading, the dollar increased against major currencies, as strong US data released on Friday boosted hopes for a Fed rate increase in December, supporting demand for the dollar.

USD/JPY added 0.15% to 123.30.

The dollar strengthened positions after on Friday, the Labor Department reported that last month the US had created 211 000 jobs, after a gain of 298 000 in October.

The unemployment rate in November remained at the previous level of 5%. Economists had forecasted a job growth by 200 000 and zero growth in unemployment.

The reports reinforced expectations that in the upcoming meeting of December 15-16, the Fed will raise interest rates for the first time since 2006. During the growing rates in the US, dollar will become more attractive for investors looking for profit.

EUR/USD fell 0.45% to 1.0830, falling from 1.0980 highs on Thursday.

Sentiment on euro remained lower after on Friday, the European Central Bank President, Mario Draghi, said that, if necessary to achieve the inflation target, the ECB is going to increase the volume of stimulation.

The comments came a day after the euro has shown the biggest one-day gain against the dollar in more than six years: it jumped 3% after the recent measures announced by the ECB did not meet market expectations.

The dollar rose against the pound and the Swiss franc: GBP/USD pair fell 0.29% to 1.5068 and USD/CHF rose 0.49% to 1.0016.

The Australian and New Zealand dollars dropped: AUD/USD fell 1.06 % to 0.7264 and NZD/USD fell 1.56% to 0.6641.

Earlier, data showed that the number of job advertisements in Australia in November increased by 1.3% after rising 0.3% the previous month.

Meanwhile, the USD/CAD pair rose 1.12% to 11.5-year high of 1.3511.

The USD index, which shows the relationship of the US dollar against a basket of major currencies, was up 0.48% to 98.75.

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