U.S. Dollar Firms As Strong Jobs Data Dampens Rate Cut Hopes

(RTTNews) - The U.S. dollar climbed against its most major counterparts in the New York session on Friday, as stronger-than-expected jobs data for December strengthened expectations that the Federal Reserve will hold rates steady for sometime.

Data from the Labor Department showed that non-farm payroll employment surged by 256,000 jobs in December after jumping by a downwardly revised 212,000 jobs in November.

Economists had expected employment to climb by 160,000 jobs compared to the addition of 227,000 jobs originally reported for the previous month.

The unemployment rate edged down to 4.1 percent in December from 4.2 percent in November. Economists had expected the unemployment rate to come in unchanged.

While the report pointed to continued strength in the labor market, the data is also likely to give the Federal Reserve confidence in its plan to gradually lower interest rates over the coming year.

The greenback climbed to more than a 2-year high of 1.0211 against the euro, more than 1-year high of 1.2190 against the pound and more than an 8-month high of 0.9189 against the franc, off its early lows of 1.0311, 1.2321 and 0.9114, respectively. The currency is poised to challenge resistance around 0.99 against the euro, 1.20 against the pound and 0.93 against the franc.

The greenback advanced to more than a 2-year high of 0.5542 against the kiwi, 4-1/2-year high of 0.6139 against the aussie and a 4-day high of 1.4443 against the loonie, from its early lows of 0.5603, 0.6205 and 1.4375, respectively. The currency is seen finding resistance around 0.54 against the kiwi, 0.59 against the aussie and 1.47 against the loonie.

In contrast, the greenback fell to a 4-day low of 157.22 against the yen, from an early nearly 6-month high of 158.87. The currency is likely to locate support around the 147.00 level.