LONDON (SHARECAST) - The dollar cornered impressive gains against major rivals on Wednesday as traders digested surprisingly robust US jobs data. Two separate reports fuelled the increasingly optimistic US economic outlook for 2011. Outplacement firm Challenger Gray & Christmas said the number of job cuts announced by US companies in 2010 was down 59% on the year before at 530,000. That was the lowest number for any year since 1997. Meanwhile numbers from payroll processor ADP showed a record 297,000 increase in private-sector employment between November and December. The reports set an upbeat tone for Friday’s monthly jobs report with economists predicting a 135,000 increase in December payrolls after a 39,000 rise in November. The dollar rose 1% against the euro and the yen as the surprisingly strong numbers helps cement the view that the US recovery is gaining momentum. Sterling lost ground against the dollar as investors mulled uninspiring UK construction figures. Activity in the construction sector fell for the first time in nine months in December as the biting cold weather put many building works on hold, according to CIPS. The overall picture for 2011 is also likely to stay subdued, it added. The gloomy report stirred up fears about the UK recovery and stood in contrast to the glowing US jobs numbers. Sterling was down around 0.6% at $1.5487.

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