Nonfarm Payrolls All But Guarantee Fed Rate Hike

US dollar is gaining ground today as the latest nonfarm payrolls reading points to a rate hike from the Federal Reserve later this month. With job growth remaining relatively steady, and the economy holding its own, many expect policymakers to begin tightening.

According to the latest nonfarm payroll report from the US Department of Labor, there were 211,000 jobs created in the month of November, and the unemployment rate is holding steady at 5 per cent.

For years, policymakers at the Federal Reserve have indicated that relatively strong employment would trigger a rate hike. Many Forex traders, analysts, and economists expect this to be that moment. With the US economy holding its own, and with job growth steady, the expectation is that there is no more reason for the Fed to delay.

While the pace of subsequent rate hikes is still a matter of debate, this news has many believing that this month’s Fed rate will rise.

At 14:39 GMT the US dollar index is moving higher, up to 98.089 from the open at 97.953. EUR/USD is lower, giving up some of its recent gains, dropping to 1.0935 from the open at 1.0950. GBP/USD is down to 1.5119 from the open at 1.5153. USD/JPY is up to 122.9560 from the open at 122.4760.

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