The USD Index is almost unchanged at 7-month high

11.11.2015

On Wednesday, dollar was little changed against other major currencies, being traded near a seven-month peak, amid growing expectations for a rate hike in the US before the end of the year.

USD/JPY pair is stable at 123.12, still near Friday's three-month high at 123.61.

Demand for the dollar persists after Friday positive US employment data, which increased the chance of raising interest rates by Fed in December.

The US Labor Department reported that the US economy added 271 000 jobs last month against the expected 180 000, the highest since December.

The unemployment rate fell to 7.5-year low at 5.0%.

EUR/USD stays almost unchanged, being traded at 1.0717, after a seven-month low of 1.0672 in the previous session.

The euro came under pressure after Reuters reported on Monday that the ECB may cut rates on deposits at its December meeting.

The dollar fell against the pound, GBP/USD pair gaining 0.40% to 1.5178, and is stable against the Swiss franc, USD/CHF getting at 1.0063.

Earlier on Wednesday, the UK Office for National Statistics reported that the unemployment rate fell in three months to September, to 5.3%, quarterly low from April 2008. Economists forecasted that unemployment rate will remain at the previous level of 5.4%.

The number of applications for unemployment benefits rose in October by 3300 compared to expectations of an increase by 1500.

Wage growth, taking into account bonuses, was 3.0% in the three months to September, according to the ONS, similar to the previous quarter and below expectations of a 3.2% growth.

The level of wages excluding bonuses rose 2.5% against the expected 2.7% after rising 2.8% in the three months to August.

The Australian and New Zealand dollars rose: AUD/USD strengthened by 0.39% to 0.7057, and NZD/USD gained 0.46% to 0.6560.

At the same time, Westpac Banking Corporation said its index of consumer sentiment in Australia rose 3.9% in this month, after increasing in October by 4.2%.

Meanwhile, the USD/CAD pair fell 0.10% to 1.3261, being traded near Friday's one-month peak at 1.3316.

Index USD, which tracks the US currency against a basket of six major rivals, almost unchanged at 99.25, close to the seven-month high on Tuesday 99.60.

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