The dollar is rising against both the Euro and the Japanese Yen Wednesday afternoon, following the release of a pair of solid economic reports. Private sector job growth outpaced forecasts in August and the economic growth was revised higher in the second quarter, boosting hopes for another rate hike by the Federal Reserve later this year.
Traders will be looking forward to the release of the U.S. jobs report for August Friday morning. Economists are expecting job growth of 180,000 in August, with a jobless rate of 4.3 percent.
Private sector employment in the U.S. increased by more than anticipated in the month of August, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment jumped by 237,000 jobs in August following an upwardly revised increase of 201,000 jobs in July.
Economists had expected employment to climb by 185,000 jobs compared to the addition of 178,000 jobs originally reported for the previous month.
A report released by the Commerce Department on Wednesday showed U.S. economic activity increased by more than previously estimated in the second quarter. The Commerce Department said gross domestic product jumped by 3.0 percent in the second quarter compared to the previously estimated 2.6 percent growth.
Economists had expected a much more modest upward revision in the pace of GDP growth in the quarter to 2.7 percent.
The dollar has climbed to around $1.1890 against the Euro Wednesday afternoon, after dropping to over a 2-year low of around $1.2070 during yesterday’s session.
Eurozone economic confidence reached its highest level in more than ten years in August, survey results from European Commission showed Wednesday. The economic confidence index rose to 111.9 in August from 111.3 in July. The score was forecast to rise slightly to 111.3 from July’s initially estimated value of 111.2.
German consumer prices rose for a fourth straight month and at the fastest pace in as many months in August, preliminary data from Destatis showed Wednesday. The consumer price index climbed 1.8 percent year-on-year following 1.7 percent increase in July. The rate was in line with economists’ consensus estimate.
The buck rose to a high of $1.2876 against the pound sterling Wednesday morning, but has since retreated to around $1.2925.
The UK mortgage approvals increased to a 16-month high in July, the Bank of England reported Wednesday. The number of mortgage approvals rose to 68,689 in July from 65,318 in June. This was the highest since March 2016 and above the expected level of 65,000.
Shop prices in the United Kingdom were down 0.3 percent on year in August, the British Retail Consortium said on Wednesday. That follows the 0.4 percent contraction in July.
The greenback has broken out to nearly a 2-week high of Y110.400 against the Japanese Yen this afternoon, from a low of Y109.664 this morning.
Retail sales in Japan jumped a seasonally adjusted 1.1 percent on month in July, the Ministry of Economy of Trade and Industry said on Wednesday. That beat forecasts for an increase of 0.3 percent following the 0.2 percent gain in June.
Japan’s small business confidence weakened for the first time in four months in August, survey data from Shoko Chukin Bank showed Wednesday. The small business sentiment fell to 49.0 in August from 50.0 in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com