The Dollar Rises by NFP Data Before Retreating

The U. S. dollar jumped on Friday to hit highest level in a year, after official data revealed more solid U.S. job growth in October, but the American currency retreated in late trading as risk appetite improved and stocks surged.

NFP increased by 531,000 jobs last month, above expected 450,000, as the latest surge in COVID-19 infections subsided.

August and September data were revised to show an additional 235,000 jobs created over those months.

The dollar index rose as high as 94.634 after the jobs report, its firmest since 25 September 2020.

The safe-haven currency slid as risk appetite improved and stocks staged a real record. The dollar was last down 0.096% at 94.234, but was still up around 0.1% for the week, which was marked by central bank meetings that forced investors to adjust rate hike expectations.

The payrolls print is certainly in line with Chair Jerome Powell’s statement at the Fed press conference, where he noted that job gains of this magnitude are consistent with the notion of making substantial further progress.