The dollar rose against most major currencies on Thursday as better-than-expected economic data from the US helped boost investor optimism.

The dollar was higher against most major currencies on Thursday as better-than-expected US jobs data eased concerns about the Federal Reserve’s possible rate cuts this year. The non-farm payrolls report due out on Friday is also expected to provide insight into the Fed’s thinking on possible policy changes.

Economists expect the number of jobs created in December to be around 170,000, which is less than the 199,000 jobs that were created in the previous month. The U.S. currency gained after a report showed that private employers in the country hired more workers in December.

Private payrolls were expected to have risen by 115,000 last month, according to economists polled by Reuters. The number of people filing claims for unemployment benefits also decreased 18,000 in the week ended December 30, which helped boost the dollar. Amo Sahota, an analyst at FX consultancy firm Klarity FX, said the data showed that the US economy was in a healthy state.

Following the data, US interest rate futures trimmed their expectations for the Fed’s rate cuts in 2024 following the release of economic reports. The implied probability of a 25 basis point reduction in the Fed’s benchmark rate in 2024 has decreased to four from six on Wednesday.

The minutes of the December 12-13 meeting of the Federal Reserve were released Wednesday, and market participants regarded them as relatively hawkish. According to them, officials noted that it was appropriate to maintain a restrictive stance until inflation was under control. “If the economy were to go through a hard landing, then we would expect the Fed to start reducing interest rates early this year,” said Sahota.

Despite the Fed’s dovish stance, the US economy is not expected to crash, according to the central bank’s projections. In cryptocurrencies, Bitcoin was up 3% at $44,157. Some investors are expecting the SEC to approve the first exchange-traded fund for bitcoin within the next couple of weeks.

The dollar was up 0.9% against the Yen. However,, according to Thierry Albert Wizman, a global rates and FX strategist at Macquarie, he does not believe that the gains from the start of the year can be sustained.

The euro gained 0.2% against the dollar on Thursday after data showed that inflation in Europe was rising. In France, consumer prices were also in line with expectations in December, as energy and services costs continued to increase.

Germany’s consumer price index (CPI) inflation was at 3.7% in December, which was higher than the 3.2% recorded in the previous month. In addition, data showed that British borrowers are more willing to take on loans, supporting the view that the country’s business sector is resilient.

The net borrowing of the UK in November reached its highest level in almost seven years. A separate survey also showed that the country’s services industry grew in December, which was more than expected. Sterling was up 0.2% against the dollar at $1.2680.