6th February 2015
Strong jobs data from the US sent the dollar soaring and means the currency’s bull run ‘could turn into a charge’, according to foreign exchange company FEXCO.
A robust jobs report showed the US economy added 257,000 jobs last month, seasonally adjusted from 329,000 in December. The figure surpassed the 237,000 economists had predicted.
The report is another sign the US economy is on track back to full health and saw the dollar jump against the euro. The single currency was down to $1.1365 from $1.1448 before the figures were announced.
David Lamb, senior dealer at FEXCO, said: ‘Seldom do economists get everything they want. Yet today might just be one of those days. America’s straight-A jobs report sent the markets and the dollar soaring – with the greenback spiking 1% against the euro within minutes.’
‘With wages rising and the rate of job creation kicking into overdrive, even the most bearish will struggle to find fault with this latest snapshot of the US economy.’
He added that 3.1 million jobs created in 2014, the strongest performance for 15 years and that ‘America’s swagger seems well justified’.
‘The dollar has always been a safe haven, but with the US enjoying soaring levels of confidence that are so far at odds with the weakness elsewhere, this polarisation is growing – and the dollar’s bull run could easily turn into a charge,’ said Lamb.