Yesterday’s high: $1.3250
Yesterday’s low: $1.3060
Hawkish Fed Comments Boost US Dollar
An unexpectedly sharp dip in US jobless claims figures helped to bolster demand for the US Dollar on Thursday.
Markets were encouraged by this latest sign of tightening within the domestic labour market.
Hopes for an imminent interest rate hike from the Federal Reserve were boosted further by hawkish comments from San Francisco Fed President John Williams.
Although Williams is not a voting member of the Federal Open Market Committee (FOMC) this year, investors still took this as a positive sign that policymakers remain generally in favour of further tightening.
USD Outlook: Volatility Likely on Jobs Data
Demand for the ‘Greenback’ could weaken during the course of the day, however, as markets await the latest non-farm payrolls report.
USD exchange rates could come under pressure if wage growth data fails to impress, with a weaker showing having the potential to discourage the Fed.
On the other hand, if average weekly earnings continue to pick up this could add to the case for an imminent interest rate hike and boost the US Dollar further.
13:30 US Change in Non-Farm Payrolls
13:30 US Average Hourly Earnings
20:00 US Consumer Credit
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