Dollar gains after U.S. jobs report!
The dollar is now up three consecutive trading days, boosted by Friday’s jobs report.
Wall Street traders’ take away from today’s hotly anticipated gauge of the U.S. economy: The greenback still has room to run, because the labor market is tight enough to warrant future interest rate increases by the Federal Reserve.
Morgan Stanley analysts, for example, wrote clients the employment report was “balanced” and “with a somewhat hawkish tilt.”
Tweet on Dollar gain after US Job reports
Dollar On Track for Further Gains, After U.S. Jobs Report@DowJones pic.twitter.com/0VkxfOqxD5
— The_Journalbiz (@the_journalbiz) October 7, 2022
Dollar moves towards new record, Dow Jones
The WSJ Dollar Index was recently up about 0.2%. Read our full daily markets roundup here.
The dollar has gained more than 20% against some currencies this year, pressuring economies grappling with rising prices around the globe.
“We appear to be entering the third dollar boom period in the past 50 years,” said Paul Gruenwald, global chief economist and S&P Global Ratings.
“There is no easy solution: passivity endangers inflation targets and credibility, rate rises risk lower output and employment, intervention is likely to burn through precious reserves.”
