The U.S. dollar continues to hover near three-year lows despite a recent U.S. Jobs Report that has the American workforce rejuvenated. Right after the report was released, the dollar saw a swift increase in value, but the currency is already back down to record-lows.
U.S. Jobs Report
In the latest U.S. Jobs Report issued last Friday, nonfarm payrolls grew by 200,000. In addition to the notable job growth, overall wages hit its highest increase since the end of the Great Recession. The unemployment rate also plummeted to 4.1 percent according to the Bureau of Labor Statistics. The overall statistics were a pleasant surprise to analysts who predicted job growth to be around 180,000.
Average hourly earnings jumped 0.3 percent along with the payroll growth. Prior to the new calendar year, experts pegged hourly increases at 2.9 percent, meaning the January growth was right on par with expectations. The only concerning pieces of information that emerged dealt with the average work week and the stock market. While the hourly increases are the best figures since 2009, the American work week fell a bit to just 34.3 hours. Markets did not react at all to the new job report, staying put across Wall Street at the end of last week.
The U.S. dollar had a great five-day run during last week. The stellar jobs report helped push the dollar higher, perhaps even higher than markets had anticipated. _Forex analysts _question why the U.S. dollar has been moving so erratically lately. The U.S. economy has been growing in recent years and 2018 was forecasted as a great campaign for the dollar, yet the currency continues to struggle. This may be due to the strong showings of other world currencies. Can the U.S. dollar follow the upward pattern of the American economy for the rest of the year? Investors can only hope those patterns align soon.