U.S. Dollar Advances As Investors Analyze NFP Data Amid U.S.-Iran Stalemate

(RTTNews) - The U.S. Dollar value moved higher on Friday as the October nonfarm payrolls came in strongly above market forecasts while the unemployment rate slumped from September numbers. In addition, the U.S.-Iran conflict continues without an end in sight triggering inflation concerns.

Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 102.30, up by 0.72 (or 0.71%).

While against the Euro, the USD was trading at 1.114, up by 0.72%, against the GBP, the USD was trading at 1.335, up by 0.75%.

Against the USD, the Japanese Yen was trading at 158.527, down by 0.54% while the Swiss Franc was trading at 0.821, down by 0.53%.

Against the USD, the Canadian Dollar was trading at 1.413, down by 0.79%.

Statistics Canada today revealed that Canada's unemployment rate rose to 6.70% in October from 6.50% of September, reaching its highest level since April and above expectations that it would remain unchanged at 6.50%.

The labor force participation rate was unchanged at 64.8%, while employed persons fell by 4,700.

Against one unit of Australian Dollar, the USD was trading at 0.686, up by 0.95%.

In the U.S., On the economic front, the data released by the U.S. Bureau of Labor Statistics revealed that the economy added 1,65,000 jobs in October, following an upwardly revised 60,000 increase in September, and well above market forecasts of 65,000. This is higher than the average monthly gain of 48,000 over the prior 12 months.

The unemployment rate eased to 4.10% in October, down from 4.20% in September and slightly below market expectations of 4.20%.

Separately, the nonfarm payrolls private showed an addition of 1,59,000 in payrolls in October, the most in seven months following an upwardly revised 78,000 increase in September.

The University of Michigan's consumer sentiment index rose to 51.00 in early November, up from 48.00 in October, and above market expectations of 48.00.

Yesterday, two officials of the U.S. Federal Reserve recommended a gradual ramping up of interest rates to combat inflation.

Cleveland Fed President Beth Hammack stated that the Fed might need to move to adopt a restrictive stance to bring inflation back to the 2.00% level.

Richmond Fed President Thomas Barkin remarked that inflation is too high and added that steady rate hikes make sense.

According to the CME Group's FedWatch Tool, currently investors are betting on a 77.10% chance of a 25-basis-point interest rate-hike at the upcoming meeting of the U.S. Federal Reserve on December 8-9 while the odds on rates being held at the current level stand at 22.90%.

Investors are awaiting clarity on how the U.S. administration plans to defuse the Middle East crisis.

After the setback in the recently held mid-term elections, Trump remarked that Iran was partly responsible for the jolt.

Democrat-elects have to wait until January to assume office, offering a 60-day period for Trump to either choose diplomacy or military aggression as a tactic to deal with Iran.

Yesterday, Trump stated that the world will soon know his decision on the possibility of a deal with Iran. Declining to rule out military option, Trump maintained that he could also destroy what is left of Iran.

Reuters reported, citing an Iranian official that Iran had sent a nuclear proposal to the U.S. through Qatar.

Today, officially Qatar stated that the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani had a discussion with Trump over phone about de-escalation.

Amid this, the Strait of Hormuz continues to remain closed.