Strong US job figures point to December rate rise

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Strong US job figures point to December rate rise

A December rate rise looked increasingly likely after it emerged the US had created 271,000 new jobs in October, significantly exceeding market expectations of a 185,000 rise.

Figures from the US Bureau of Labor Statistics showed total nonfarm payroll employment rose by 271,000 in October, with the unemployment rate unchanged at 5 per cent.

Job gains occurred in professional and business services, health care, retail trade, food services, drinking places and construction.

Over the previous 12 months, employment growth had averaged 230,000 per month.

The dollar rose strongly against the euro following the news, increasing from €0.9205 at 1.20pm to €0.9309 at 1.45pm.

Commenting on social media, IHS chief European and UK economist Howard Archer said: “Strong US jobs report following straight after dovish Bank of England (BoE) inflation report fuels belief Fed will hike in December and well ahead of BoE.”