The dollar rose after the data on private sector employment

On Wednesday the US dollar marked an increase following the report on US Private-sector employment data. Meanwhile  the euro fell as a result of negative data on consumer prices in the Eurozone. 

In September the US private sector created 200,000 new jobs. Analysts predicted number to be around 192,000. This data suggest that the Federal Reserve may raise interest rates until the end of the year. 

Following the publication of information on employment, the dollar index rose 0.45 %. The US currency rose 0.10% against the Japanese yen to almost 120. The dollar marked an increase and against the Swiss franc and British pound.

Data released for consumer prices in the euro area showed a decrease of 0.1% yoy, which is far from the ECB target inflation of 2%. As a result, the euro fell 0.6 % to $ 1.1180 and 0.5% to 0.7380 against the British pound. This fueled speculation that the ECB may extend quantitative easing program at a time when the Fed is preparing to raise interest rates.

According investors report on employment in non-agricultural sector, which will be released on Friday will determine whether the Fed will raise interest rates and give direction to the dollar.