Employment in the USA improved by about 195,000 jobs in June according to the Labour department, above expectations for 165,000. There were also positive revisions to previous months, though the unemployment rate ticked up to 7.6 percent from 7.5 percent.
The announcement this morning sent stock prices higher in the USA and resulted in a surge of the US dollar against the other major currencies as the data indicates continued recovery for the largest economy in the world and is bringing the time frame for the Federal Reserve to start cutting back on easy money much closer to hand.
The news is good for Caribbean countries that depend a great deal on the health of the US economy. For Jamaica it will be increasing earnings for the tourist sector going forward as more Americans feel financially empowered.
Immediately, the rate of exchange for the Pound and Canadian dollars should reflect the increase US dollar strength when the Forex rates are release by Bank of Jamaica later today.
[…] for the Pound against the USA dollar which surged today against most currencies with the release of better than expected payroll employment numbers in the US economy . The highest and lowest rates for the British currency all fell with the […]