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How Advanced U.S. Labor Statistics Are Affecting The Dollar

The U.S. dollar rose steadily last year, but could continue to trend higher as additions to the labor market and labor costs increase inflation measures, causing policymakers to potentially raise benchmark rates in coming months. PowerShares DB US Dollar Index Bullish (UUP) is up over 16% since July, as is seen in the chart below.

(click to enlarge)

Data provided by Trading View

The ADP employment change indicator, released Wednesday, came in below estimates, but has grown steadily in recent years. The employment change figure came in at 213,000 jobs in January, below the revised 253,000 the month before, as well as missing estimates for 225,000. Since 2010, ADP employment has trended between 150,000 and 300,000 jobs, as is seen in the chart below. Recent weakness in the employment change is attributed to job cuts in the oil and gas industry.

"Employment posted another solid gain in January, although the