“The stronger than expected 195,000 payrolls in June should send U.S. rates scurrying higher and bring the day of reckoning for quantitative easing that much closer,” said Joseph Trevisani, chief market strategist at WorldWideMarkets. “The dollar will continue to benefit from the prospective terminus of QE.” U.S. job growth was dramatic in June, which leads to greater expectations for the end to QE. As has been trumpeted everywhere, employers added 195,000 new jobs last month while the unemployment rate held at 7.6 percent as more people entered the workforce.
But perhaps more importantly, the government revised payrolls for April and May to show an additional 70,000 more jobs than previously reported.
Following just a few weeks after Federal Reserve Chairman Ben Bernanke said the U.S. central bank expected to start tapering its easy money stimulus this year, expect the dollar to be bid going forward with just the usual daily hiccups getting in the way.