Dollar Strengthens after U.S. Payroll Data

The U.S. dollar strengthens following the disappointing U.S. employment growth figures for August which only slightly affected the perception of investors regarding the Federal Reserve's likelihood of increasing the interest rates in the following months. Nonfarm payrolls increased by 151,000 jobs in August, according to the U.S. Labor Department.

Average hourly wage earnings increased by 0.1 percent, which falls behind the 0.2 percent growth of market expectations. As the increase of the average payroll during the last three months tops 200,000, investors have then concluded that the jobs report would not be a severe impact to the Fed's plan to lift interest rates. U.S. fed funds futures price is at a 20 percent likelihood of a rate hike this September and a 60 percent odds by the end of the year.

The dollar's index against a basket of six major currencies .DXY=USD was buoyed as it immediately gained from its one-week low of 95.189 following the payroll data.

News are provided by InstaForex