#XMINDO_FX Market - Jul 04 The U.S Dollar strengthened against major rivals on Thursday, as it rose tothe highest in more than a week, after job growth blew past expectations and the unemployment rate fell to the lowest level since before the financial crisis peaked six years ago, creating a firm foundation for a stronger U.S. economic expansion, and boosting speculation the Federal Reserve may bring forward the timing of interest-rate increases. Payrolls rose by 288,000 workers following a 224,000 gain the prior month that was bigger than previously estimated, Labor Department figures showed. Employment gains for May and April were also revised up by a combined 29,000, the Labor Department said. The decrease to 6.1 percent from May’s 6.3 percent put the jobless rate at the lowest level since September 2008. Fed policy makers had projected in their meeting last month that it wouldn’t get that low until the end of the year. Another report showed service providers including construction firms and retailers expanded in June at the second-fastest pace in almost a year, indicating more momentum in the economy. The Institute for Supply Management’s non-manufacturing index eased to 56 in June from May’s 56.3, which was the highest since August. Figures from the Commerce Department also showed the U.S. trade deficit narrowed 5.6 percent in May to $44.4 billion, helped by record exports. But that hides some less-good news. Excluding petroleum, the U.S. trade gap in goods in May, on an inflation-adjusted basis, was $48.96 billion, the largest on record. Also, President Barack Obama said that the job report in June should give Americans the sense that the economy has built moment. Earlier on Wednesday, Federal Reserve Chair Janet Yellen had said that concerns about financial stability shouldn’t prompt a change in current monetary policy while flagging “pockets of increased risk-taking” in the financial system. Markets were closed in the U.S. for the 4th of July holiday. The Dollar Index, which tracks the performance of the U.S Dollar versus a basket of six other major currencies, was up 0.33% at 80.209. xmindofx/market-news
Posted on: Fri, 04 Jul 2014 11:35:22 +0000