New U.S. Employment Data Pushes Dollar Higher

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stacks of 100 dollar bills

The dollar soared higher against other currencies on Wednesday after a new report revealed higher-than-expected gains in employment. ADP, a payroll processing firm, revealed that private employment (non-farm) was up by 200,000 in September. Economists were expecting an increase of just 194,000.

Approximately 186,000 jobs were created in August, a figure that was revised down from the original report of 190,000.

Investors are anxiously awaiting comments from Janet Yellen, Fed Chair, who is expected to speak later in the day. Yellen will address the mixed messages sent by policymakers at the central bank last week, which led to uncertainty as to whether the Fed would raise rates in 2015.

On the news, the dollar surged higher against the yen, up 0.41% at 120.23. The euro also dropped against the dollar 0.51% to 1.1191.

Meanwhile, the dollar slid against the pound, with GBP/USD at 1.5165, up 0.10%.The greenback climbed higher against the franc, with USD/CHF at 0.9750, up 0.32%.

The New Zealand and Australian dollars remained stronger, with NZD/USD at 0.6362 (up 0.24%) and AUD/USD at 0.7017 (up 0.45%).USD/CAD held strong at 1.3419.

The U.S. dollar index was at 96.38, up 0.33%. The index weighs the strength of the dollar against six major currencies.

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