The US economy created more jobs than expected in July contributing to lowering the unemployment rate and increasing the pressure on the Federal Reserve to tighten monetary policy.
Data coming out of the Bureau of Labour Statistics show the payroll figure coming in at 209,000 with the estimate over 20k lower at 183,000.
The Federal Reserve raised rates by 0.25 per cent in June to 1 to 1.25 per cent and its forecasts indicated one more hike in 2017 and three more in 2018. The immediate reaction to these figures are calls for this hike to take place despite the subdued inflation.
The USD rallyed gaining 1.5 cents against the Pound and 0.5 cents against the EUR.