U.S. non-farm payrolls increased by 531,000 jobs in Oct
The dollar hit a more- than a year high on Friday after data showed that the United States created more jobs than expected in October, which pushed the country closer to full employment, one of the Federal Reserve's conditions for raising interest rates.
Nonfarm payrolls increased by 531,000 jobs last month as the surge in COVID - 19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
According to economists, payrolls went up by 450,000 jobs.
The numbers will continue at this pace, and we could see full employment at the end of the first quarter, said Peter Cardillo, chief market economist at Spartan Securities.
The dollar index, which measures the dollar against six rivals, rose as high as 94.634 after the jobs report, its highest level since Sept. 25, 2020.
The dollar, which has strengthened around 1% in the past fortnight, was last up 0.22% at 94.534.
The U.S. two-year yield went up over two basis points on the day before it was moderating, according to Simon Harvey, a senior FOMC market analyst at Monex Europe.
The dollar going bid across the G 10 space as a result of widening front-end yield spread. The biggest global central banks knocked back bets for early rate hikes after investors have been forced to reset monetary policy expectations this week.
The Bank of England's decision on Thursday to lift rock-bottom benchmark rates was the biggest shock for markets and pushed sterling to its biggest one-day fall in more than 18 months by as much as 1.6% on the day.
The pound fell by one-month low of $1.34250 on Friday, hitting a new one-month low of $1.34250. It was last down 0.29%.
Despite inflationary pressure and held rates, the Reserve Bank of Australia stuck to its dovish stance. The Aussie is on track for around a 2% weekly fall, and was last down 0.2% on the day at $0.7387.
The Federal Open Market Committee said on Wednesday that it would be a $15 billion monthly tapering of its $120 billion monthly asset purchases, which was a result of the Fed Chair Jerome Powell, which said he was in no rush to increase borrowing costs.
The FOMC delivered a ``dovish taper, but the USD is still better positioned than most, Westpac strategists wrote in a client note.
The European Central Bank President Christine Lagarde said that it was very unlikely that such a move would happen in 2022, but said it was very unlikely that it would happen to the rate increase as soon as next October.
The euro went down by 1.0% to $1.15195 after falling by 0,5% overnight.
Among cryptocurrencies, it was up slightly at around $61,600, having largely traded sideways since it hit its all-time high above $67,000 last month.