The dollar is gaining ground from its primary rivals following the release of new jobs data. The Labor Department stated that the U.S. economy added 215,000 jobs during the month of July. The number was close to the predictions issued by economists. One survey of economists showed a forecast of the addition of 220,000 new jobs. The new data shows that the labor market continues to recover and that should keep the Federal Reserve on course to increase interest rates in the foreseeable future.
The unemployment rate remain the same at 5.3%. Employment gains for the months of June and May were adjusted upward by a combined 14,000, according to the Labor Department. The government announced that 231,000 new jobs were produced in the month of June instead of the originally released number of 223,000. May’s increase was elevated to 260,000, up from 254,000. Over the course of the past three months the U.S. economy has produced an average of 235,000 job opportunities, an increase from a 195,000 average in quarter one.
The dollar climbed to 125.07 yen following the release of the report, its highest level versus the Japanese currency since the first week of June. It was trading at 125.64 yen just before the report was released. The euro fell to $1.0875 following the report release, its lowest level in two days. The currency traded at $1.0950 earlier in the day. The pound is down to $1.5444 after the data release, slightly higher than its lows from yesterday’s trading session. It was trading at $1.5520 in advance of the jobs data release.