The dollar has enjoyed a positive trajectory in the wake of encouraging data on the US jobs market.

This afternoon the dollar stood at 1.7663 against the pound and at 1.2092 to the euro.

Jobless claims fell to 271,000 according to the Labour Department, down by 36,000 on previous figures.

Analysts were heartened by the figures, with many predicting that the Federal Reserve would continue to raise rates in the short-term.

There were eight interest rate rises in 2005 from the Fed.

BNP Paribas Securities currency strategist Naomi Fink told Bloomberg:  "It looks like we have a fairly robust employment market." said

"The Fed has a couple of more rate hikes to do. There could be some support for the dollar."
Meanwhile, in the UK, positive economic data emerged in the shape of strong online retail sales as well as encouraging signs for the property market as mortgage lending grew, according to new figures released by the Council of Mortgage Lenders (CML).

The CML reported that gross mortgage lending hit £26.3 billion, well up on 2004 figures.