According to CME Fedwatch Stats, and based on futures quotes, the odds of a December hike surged to 69.8% today, from 58.1% yesterday, and a mere 4.6% a month ago following last month's dismal jobs report.

US Dollar Index 15-Minute Chart

US Dollar Index Monthly Chart

The last monthly close above 100 was in 2003.

The reason for the rate hike and dollar surge can be found in today's jobs report. For details, please see Strong Payroll Bounce +271,000; December Rate Hike Likely.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

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Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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