Dollar Exchange Rate Today: US Jobs Data Sees GBP/USD Forecast Plummet

December 7, 2014 - Written by John Cameron

STORY LINK Dollar Exchange Rate Today: US Jobs Data Sees GBP/USD Forecast Plummet

The Pound to Dollar Exchange Rate Falls as US Jobs Data Bolsters the American Currency

Friday afternoon’s US jobs numbers thrashed analysts’ expectations, revealing that 321,000 new jobs had been generated in the US during November, triggering significant shifts in the relative value of several leading global currencies.

Analysts forecast that there may be more price action for the GBP/USD to come next week.

The Pound to US Dollar exchange rate converts at 1 GBP is 1.55795 USD.
The Euro to US Dollar conversion rate is 1.22850 EUR/USD.
The Swiss Franc to US Dollar exchange rate today is converting at 1.02155 CHF/USD.
The Canadian Dollar to US Dollar exchange rate converts at 1 CAD is 0.87457 USD.
The Hong Kong Dollar to US Dollar exchange rate today is converting at 0.12901 HKD/USD.
The Australian Dollar to US Dollar conversion rate is 0.83136 AUD/USD.

Massive US Job Creation

The go-ahead employment figures provided further evidence that the US economy is well on the road to recovery following the 2007 / 2008 global economic crisis. It was the tenth month on the trot that the official figures showed that over 200,000 new positions had been added to the combined non-agricultural payroll of the world’s premier economy.

Predictably the Pound Sterling to US Dollar exchange rate slumped in response, dropping to an intraday low of 1.5566 GBP USD a short time ago.

Analysts Forecast Positive Dollar Performance

Quincy Krosby of Prudential Financial Inc. explained earlier that, ‘it looks as if the trend is in with the Dollar strengthening against the other developed currencies.

The economy is clearly moving from slow to solid and -- if we continue this way -- we’ll get to stellar probably within a year.’

Omer Esimer of Commonwealth Foreign Exchange was even more bullish on the Buck, stating earlier that, ‘all of this is very positive for the Dollar. This is likely to not only keep the Fed on track to raise rates around the middle of next year, but could begin to spark talk of a potentially earlier interest-rate hike.’

Aus Dollar & NZ Dollar Exchange Rates Lose Ground

The positive news for the States has favoured the Greenback, but has seen the risk-sensitive Australian and New Zealand Dollar give up ground.

The thinking from investors is that the stellar US jobs data makes a US Federal Reserve interest rate hike more likely in the near-term; such a decision from America’s central bank would signal the beginning of a normalisation of global monetary policy and the Commodity Dollars would lose out thanks to the attendant drop in risk appetite.

Analysts forecast that the Pound to Australian Dollar and New Zealand Dollar exchange rates will track Northwards as a consequence.

Asian Currency Exchange Rates Fall

Elsewhere, this week’s session has also been notable for a pronounced slump in the value of Asia’s currencies. It was the sixth consecutive week of losses for the regions tenders which have been hard hit by the continued drop in the price of a barrel of crude oil.

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