Dollar/Euro Trend High Against the Yen reports Best Exchange Rates
Reach two year high exchange while US unemployment remains stagnant
The data that was received a day following the Fed's meeting showed that certain policymakers were seriously considering an end to the bond-buying program as early as 2013, which sparked a U.S. Bond yields rally, as well as the dollar.
The pace of hiring within the U.S. Employers slowed within December, according to the Labor Department. Nonfarm payrolls grew to a total of 155,000 last month, which followed in suit with analysts' expectations, and slightly lower than the November levels. United States jobless rate held at a steady 7.8%.
"The most important point is that the latest unemployment rate data has been broadly steady for four months now, so even with decent employment growth no downward progress has been made on the unemployment rate," said Alan Ruskin, head of G10 FX strategy at Deutsche Bank in New York.
The data "will if anything push out the date for an end to QE (quantitative easing), represents solidly risk-positive numbers and will lead to some minor squeeze on recent U.S. dollar longs."
History has shown the dollar weakens when investor risk exposure increases by buying higher-yielding currencies, such as Autsralia's and New Zealand dollars. Conversely, the dollar tends to gain when investors are risk-average or safe havens.
The euro saw little change at $1.3042, when it touched the session high of $1.3058 after the release of jabs data.
The dollar rose to 0.5% to the 87.79 yen. That marks off the session peak of 88.40 yen, according to a Reuters data source.
The Fed stated that in December they would keep interest rates near the 0% mark until unemployment fell to 6.5% or lower. That statement is conditional on estimates of medium-run inflation does not exceed the 2.5% marker.
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