7th August 2015
The dollar strengthened on the back of a positive US employment report that showed 215,000 jobs were created last month.
The dollar jumped after the report to reverse its losses and trading up against most major currencies. It was up 0.3% against the euro and 0.2% against the yen and sterling.
The report showed the unemployment remained unchanged at 5.3% last month.
Chris Towner of foreign currency specialists HiFX, said: ‘In reaction to the data, the US dollar initially strengthened, as some are interpreting this report as a green light for a September rate hike in the US.
‘However, this is still uncertain as the data was far from substantial in providing the market with reassurance that the labour market is solid. Now that talk of rate hikes has had an opportunity to seep through into the market, expect the US recovery story to slow and yet again stall the need for rates to go higher.’
He added that the market remains ‘sensitive’ in both the US and UK to the potential for interest rate hikes and ‘perhaps as the weeks unfold the vulnerability of the world economy to rate hikes will become clearer’.