USD stabilized on Wednesday in a narrow range of trading near a two week high against a basket of world currencies. This comes amid rising political tensions between the United States and North Korea and its negative impact on high-yielding currencies. For the third time this year as strong data on the labor market in the United States continues.
The dollar index is trading at 93.47 points from the opening level of 93.46 points, recording a high of 93.61 points and a low of 93.36 points.
The index ended yesterday’s trading up 0.2 %, the second gain in three days, hitting a two week high of 93.76 points, after the US job vacancies in June rose to an all-time high.
Tensions on North Korea have been renewed in an unprecedented way since Donald Trump came to power in the United States, Trump said on Tuesday that any threat to his country would be met with fire and anger. Korea responded on Wednesday by announcing plans to launch ballistic missiles on the US island of Guam The Pacific Ocean.
The jobless rate rose by 460,000 jobs in June to a total of 6.16 million jobs, the highest level since the data was released in December 2000, thats what the Labor Department said on Tuesday.
With strong data on the labor market, the chances of the Federal Reserve raising interest rates for a third time this year, and the strongest meeting in December, have increased, especially as US monetary policy makers have previously stressed the strength of the labor market, Interest rates gradually.
The US economy is expected to release important data on the labor market from the Non Farm Employment and Productivity Unit (NFP) figures later today, following a higher than expected rise in non-farm employment in the United States in July.
The preliminary reading of the projected unit labor costs rose by 1.1% in the second quarter of 2017 from a rise of 2.2% in the first quarter of 2017. The preliminary reading of the non agricultural productivity was expected to rise 0.7% in the second quarter from a rise of 0.0% in the first quarter.