The Dollar is charging forward following the news that the United States added 280,000 jobs to its economy during May, which provides further confirmation that job creation remains the star performer of the US economy. Not only will this jobs report continue to raise optimism that the downturn in economic data at the beginning of the year was just temporary, but this report provides all the necessary assurances to investors that the Federal Reserve will be raising US interest rates later this year.
Gold has dropped to over a two-month low at $1164, which could only be linked to the interest rate outlook from the United States while both the Eurodollar and Cable have each fallen by 1 cent. The Dollar gains do not conclude here with the USDJPY jumping to around a thirteen year high at 125.715 and emerging market currencies such as the Mexican Peso receiving punishment.
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