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Dollar jumps as US job figures beat forecast

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The dollar has rallied against the pound after official figures showed better-than-expected US job and wage growth last month.

Sterling hit one week lows against the greenback when the US Labour Department reported 209,000 net new jobs were created in July – almost 30,000 more than analysts had expected.
There was also an uptick in monthly wage growth – something the US central bank is watching closely – though the annual rate remained at 2.5%.
The core figures were seen as bolstering the chances of a further interest rate hike this year as the Federal Reserve moves to put the financial crisis behind the country by looking to shrink its massive portfolio of bonds.

It announced, in June, that it was intending to start unwinding the $4.2tn quantitative easing programme – used to ensure the economy had enough cash to support economic recovery.
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Source: SKY