U.S. Dollar is Higher on Strong Jobs NumberPosted 12/06/2019 9:33AM CT |
U.S. dollar futures are 30 points higher Friday morning after the release of a blowout November jobs report, indicating the U.S. economy is withstanding a slowdown in the world economy. American non-farm payrolls increased by 266,000 jobs in November, crushing expectations of 180,000. Unemployment matched a 50 year low of 3.5%, while average hourly earnings growth clocked in at 3.1% year/year. It would appear as if 2019 Fed policy is having a positive effect on the economy, lowering the chances of a future rate cut and supporting the greenback. Friday’s chart shows an engulfing candlestick which often signals a reversal. So long as the dollar remains above 97, I believe the momentum remains positive. Foreign currencies are selling off as money is reallocated to the US currency. The Canadian dollar and the euro are Friday’s biggest losers, with the Australian dollar 4 points higher. The New Zealand dollar appears to have broken out this week and looks to be poised for more upside.