US dollar holds onto payrolls gains, NZ dollar rises after election
TLT•The dollar index held at 102.20 after rising about 0.7% on Friday, as strong US jobs data lifted bets on a Federal Reserve rate hike. The New Zealand dollar rose 0.4% after an election that left the country’s governing coalition uncertain.
1. Dollar steadies after jobs data
The US dollar traded near multi-month highs against the euro and Australian dollar on Monday, after Friday’s US employment report showed October job growth accelerated and unemployment fell. The dollar index was steady at 102.20 after its 0.7% Friday gain.
2. Rate hike bets increase
Futures implied a 79% chance of a Federal Reserve rate increase on December 9, up from 71% a week earlier. Fed officials said inflation remained too high, while Barclays strategists wrote that strong economic data continued to support the dollar despite concerns about AI regulation and investment.
3. New Zealand result pending
The New Zealand dollar rose 0.4% to $0.5557 after hitting a seven-month low late last week. Preliminary results gave Prime Minister Christopher Luxon’s National Party, ACT New Zealand and New Zealand First 67 seats in the 131-seat parliament, but nearly 400,000 votes remained uncounted and official results were due November 27.
