A look at last week’s Forex

by Mike Elliot | Thursday, Dec 8, 2016 | 136 views
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The dollar’s index slid a bit against the world’s major currencies following the release of the US jobs data. This follows the negative results of the US jobs data which showed a decline in the monthly wages of employees although the overall number of jobs increased.
The US dollar index is responsible for measuring strength of the dollar against six major world currencies. By the end of the Friday trading session, the index was down by 0.27 % and closed its trading session at 100.75.
But, the decline of the index comes as news to most investors. This is mainly because the index has not shown any signs of slowing down over the past one month. In the last four weeks, the index rallied past other major currencies. But, last week Friday saw it give up gains amounting to 0.68 %, the first gains it has lost since the four weeks rally of last month.

US employment data

According to the US employment data released by the Labour Department, there was an addition of jobs numbering up to 178, 000 from September leading up to November. Further, there was a drop in the unemployment rate causing it to lie at 4.6 %. This is actually the lowest it has reached in 9 years. Before the release of the data, the unemployment rate for October stood at 4.9 % and economic experts had expected it to remain the same. But, the release of the data had shocked most of them.
Meanwhile, the wage data had not impressed the investors and explains why the dollar rally suddenly came to an end despite news of a Federal Reserve hike this month. According wage data, average hourly earnings for employees had dropped by 0.1 % with an annual wage growth dropping to 2.5 % from October’s 2.8 %.

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