The US dollar continued its unstoppable rise for yet another session today. Economic reports, especially employment data, fueled optimism about the US economy and speculations about a close interest rate hike from the Federal Reserve.
The dollar retained its strength, rallying to new highs against the euro and the Great Britain pound, as analysts predict that tomorrow’s non-farm payrolls will show substantial growth. Other employment reports supported optimism. Yesterday, data from Automatic Data Processing showed a robust increase of employment by 241,000 in December, while today’s report about unemployment claims demonstrated a small drop by 4,000 to 294,000 last week.
All in all, fundamentals look very positive for the US currency. While the market sentiment improved a bit, it did not hurt the rally of the greenback.
EUR/USD dropped from 1.1839 to 1.1793 as of 21:41 GMT today, reaching 1.1754 intraday — the lowest rate since December 2005. GBP/USD declined from 1.5108 to 1.5089, and its low of 1.5034 was the lowest since July 2013. USD/JPY advanced from 119.24 to 119.67.
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