U.S. Dollar Climbs As Strong Jobs Data Reduces Rate Cut Hopes

(RTTNews) - The U.S. dollar firmed against its major counterparts in the New York session on Friday, as stronger-than-expected jobs data for November tempered expectations for early interest rate cuts by the Federal Reserve.

Data from the Labor Department showed that non-farm payroll employment jumped by 199,000 jobs in November after rising by 150,000 jobs in October. Economists had expected employment to climb by 180,000 jobs.

Meanwhile, the unemployment rate dipped to 3.7 percent in November from 3.9 percent in October. The unemployment rate was expected to remain unchanged.

Treasury yields rose following the release of the report, as the data has partly offset recent optimism that the Fed could pivot toward interest rate cuts as soon as March 2024.

The odds of a rate cut in March fell to 45 percent from 55 percent on Thursday.

The greenback advanced to a 10-day high of 0.8807 against the franc and a fresh 2-week high of 1.2511 against the pound, from yesterday's close of 0.8747 and 1.2587, respectively. The greenback is seen finding resistance around 0.90 against the franc and 1.21 against the pound.

The greenback climbed to a 10-day high of 0.6111 against the kiwi and more than a 3-week high of 1.0723 against the euro, from Thursday's close of 0.6168 and 1.0793, respectively. The currency may find resistance around 0.60 against the kiwi and 1.04 against the euro.

The greenback moved up to 145.20 against the yen and 0.6566 against the aussie, from its previous close of 144.09 and 0.6602, respectively. It is likely to locate resistance around 148.00 against the yen and 0.62 against the aussie.

The greenback edged up to 1.3607 against the loonie, from a 2-day low of 1.3564 seen at 6:15 am ET. At yesterday's trading close, the pair was quoted at 1.3598. Next key resistance for the currency may be located around the 1.38 level.