Jobs Report Leads To Soaring Dollar

Posted November 07, 2010

Euro struggles on debt concerns. US dollar up after jobs report.


US dollar up on Friday against the euro and the yen. This comes after concerns in the euro zone about debt and also as a response to the positive data out of the Labor Department in the United States showing that payrolls improved in October.

US Dollar

Various factors played a role in the improvement of the US dollar during the Friday currency trading session. Specifically, the dollar was up by one percent against the euro and it gained significantly against the Japanese yen. Investors were impressed that the US economy had produced some 151,000 new US nonfarm jobs in the month of October. That number was higher than what economists had predicted. That helped the US dollar recover from a week of lows.

The US Dollar Index showed the US dollar up against most of its rivals. It moved from 75.905 as of late Thursday in New York trading to 7.582 by the end of trading on Friday. It did rise as high as 76.639 during the day, right after the payroll data was released by the Labor Department.


During the currency trading day on Friday, the euro moved from US $1.4209 at the end of the trading session on Thursday to US $1.4039 by the end of the session on Friday. The euro is still near its highest level since January of 2010. The euro still managed to be up for the week against the US dollar. It was up 0.7 percent against the dollar for the week and up three percent against the US dollar in this quarter. 

One of the factors affecting the euro was the negative debt information that is coming out of Ireland. Investors are concerned about Ireland’s ability to fund itself. This is one of several problems still present in regards to the European sovereign debt crisis that has been on the back burner for some time. Sovereign debt concerns still exist for Ireland, Portugal, Spain, Greece and Italy, all to various degrees.


The US dollar also improved during the session against the yen. It moved from Y 80.73 as of late Thursday in New York to Y 81.35 by the end of the day on Friday. The US dollar rose 1.2 percent against the yen during trading this week. However, it is still down 2.7 percent for the quarter against the Japanese currency.