Dollar Index back at 84 on US jobs data whilst euro & UK sterling slide

The US Dollar Index is back over the 84 mark again, the strongest in more than a month against the yen, euro and UK sterling whilst positive expected jobs data in the US also boosted the greenback’s appeal for investors in the world’s biggest economy.

Latest US Dollar Rates

The ICE US Dollar Index, which tracks the dollar against a basket of major world currencies was trading at 84.135, 07:38 GMT this morning on the ICE Futures Exchange, a five week high amid speculation improvement in the American economy will prompt the US Federal Reserve to curb it’s money printing program, better known as QE.

US Jobs Data

The US Labor Department will probably say today companies added 165,000 positions last month after increasing them by 175,000 in May, according to analyst forecasts. A separate poll predicted the American jobless rate fell to 7.5 percent from 7.6 percent in the previous period.

Euro and UK Sterling in Crisis?

Both sterling and the euro headed lower against the dollar on Thursday as grim predictions surrounding interest rates for the UK and Europe emerged. The BOE (Bank of England) and the ECB (European Central Bank) have now confirmed that interest rates will remain low for a prolonged period of time.

Barclays bank cut its forecasts for the euro and UK sterling following the BOE and ECB meetings stating: “Both central banks have offered a clear counter to the tightening in financial conditions which have resulted from the moves in US rates.”

“The dovish comments from the ECB and BOE, together with a stronger payrolls report emphasize that the Fed will be the first of the major central banks to exit unconventional policy. That’s just going to support a further rise in the U.S. dollar.” said Joseph Capurso, a Sydney-based currency strategist at Commonwealth Bank of Australia.

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Dollar Index back at 84 on US jobs data whilst euro & UK sterling slide