Dollar shows growth expecting Yellen speech

30.09.2015

On Wednesday, the dollar rose against world currencies after a positive report on non-farm employment in the US private sector, while investors await the speech by Federal Reserve Chairman, Janet Yellen, later today.

The dollar rose against the yen; USD/JPY pair rose 0.28% to 120.07.

According to ADP, the number of employees in the US private sector grew by 200 000 this month, exceeding the projected increase by 194 000.

In the United States, there were created 186 000 jobs in August, the figure being revised down from a previously reported increase of 190 000.

Also, a market research group said that the index of business activity in Chicago fell this month by 5.7 points to 48.7 from 54.4 in August. Analysts had expected the index to decline in September by 1.4 points to 53.0.

Later today, investors are awaiting comments of the Federal Reserve chief, Janet Yellen, after controversial statements by representatives of the US central bank this week have increased uncertainty about whether the Fed will raise this year the interest rates.

Dollar went also higher against euro; with EUR/USD pair fell 0.66% to 1.1174.

The single currency came under pressure after Eurostat, the Statistical Office of the European Union, said that the annual rate of inflation in the Eurozone fell 0.1% this month compared with expectations of a lack of dynamics. The region showed a decline in inflation for the first time in six months.

Another report showed that the unemployment rate in the Eurozone remained at 11.0% in August.

Dollar is steady against the pound, GBP/USD pair being traded at 1.5154, and rose against the Swiss franc: USD/CHF pair rose 0.40% to 0.9758.

The pound got support after data showed that the UK's gross domestic product rose 0.7% in three months to June, matching forecasts and unchanged from a preliminary estimate.

In annual terms, UK GDP increased by 2.4% in the second quarter, below the initial estimate of 2.6%.

The Australian and New Zealand dollars showed an increase: AUD/USD rose 0.59% to 0.7028 and NZD/USD rose 0.71% to 0.6392.

Meanwhile, the USD/CAD pair fell 0.27% to 1.3386 after statistics department of Canada reported that its GDP grew by 0.3% in July, exceeding the projected increase of 0.2%.

The USD index, which shows the relationship of the US dollar against a basket of major currencies, rose 0.42% to 96.47.

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