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At the present, an unexpected decline in first time unemployment insurance filers is showing some recovery in the US, prompting on Friday the Dollar’s sharp rise against all major Forex currencies on Friday.

The non-farm payrolls for November showed a loss of 11,000 jobs (against an expected loss of 130,000).

These news hit the Forex trading circles, that began speculating about the strong data having spark a rise in interest rates from the Federal Reserve Bank (which cited job-losses in their briefing the previous week) as one of the reasons for leaving rates unchanged for now.

As well, a rate increase is considered as having the power to increase returns on Dollar linked assets.

At the close, the Dollar traded up 1.3% against the Euro to 1.4856, up 2.6% to the Japanese Yen to 90.54, up 0.4% versus the British Pound Sterling to 1.6472, up 0.07% against the Canadian Dollar to 1.0578, up 1.01% next to the Australian Dollar to 0.9145, up 0.73% to the Kiwi to 0.7161 and up 1.55% versus the Swiss Franc to 1.0164.

The ICE Futures Dollar indicator (a non-traded indicator that measures the USDs performance against a basket of 6 major currencies), saw its largest single day rise since October of 2008. The index traded up 1.09% to just under 75.

Yet, many in the investment world are discounting the large decrease in lost jobs to temporary holiday employment campaigns. Distributors, retailers, manufacturers and shipping companies use to hire short-term workers to fill their increased productivity usually seen during the holiday season (which falls out between mid-November and the beginning of the next year).

It seems that the real test would be to see the January data when it comes out in early February.

Until this time, many professionals don’t believe the US Federal Reserve will move to lower interest rates