© Reuters. The dollar rose on strong U.S. labor market data on Friday.
Investing.com – The dollar rose against its rivals Friday on upbeat U.S. labor market data showing better-than-expected jobs and strong wage growth, underlying the strength of U.S. economy just as President Donald Trump hinted that the next round of tariffs could come into effect “soon.”
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, frose 0.41% to 95.38.
Demand for the safe-haven yen remained relatively subdued despite Trump warning that a fresh volley of tariffs on China could “take place very soon.”
“I hate to say this, but behind that there is another $267 billion ready to go on short notice if I want,” Trump said. This would add to the $200 billion in goods already targeted, according to Bloomberg and Reuters.
rose 0.23% Y111.01, while fell 0.57% to $1.1556.
The comments come amid signs of ongoing U.S. economic strength following a bullish labor market report.
The U.S. economy added 201,000 jobs in August, above , while the unemployment rate , the Labor Department said on Friday.
The Federal Reserve’s view that a tighter labor market would lead to wage growth, increasing inflationary pressures, was validated somewhat as grew 0.4%, topping economists’ forecast for a 0.3% increase.
With a quarter-point rate hike already for the Sept. 25-26 meeting, the stronger average hourly earnings print lifted expectations for rate hikes further out the curve. BofA Merrill Lynch said it expects three more increases next year following Fed hikes later this month and in December.
“The labor market may have reached a point where limited labor supply is finally starting to put meaningful upward pressure on wages,” the bank said.
The dollar’s surge forced the pound to give up strong gains, which had followed reports that the UK parliamentary transcripts showed European Union chief Brexit negotiator Michel Barnier was “open to discussing other backstops” concerning the Irish border issue, easing expectations of the UK leaving the EU without a trade deal.
fell 0.02% to $1.2927 after trading as high as $1.3028 intraday.
Credit Agricole (PA:) said there “a lot negatives” for the pound and that buyers in the currency likely reflected investors hedging their bearish bets on sterling.
rose 0.24% to C$1.3175 as underwhelming labor market data from Canada, weakening demand for the loonie, strengthening the pair.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
