The US dollar gained upward momentum again last Friday after Federal Reserve Chair Yellen made comments perceived by many analysts as indicating an interest rate hike may be very close. Price went from an open of 100.50 to close at 101.788, after a pause on Monday, momentum picked up again yesterday with an open at 101.904 and a close above 103.00.
Yesterday’s rally was also helped by better than expected Consumer Confidence data which was released at 3pm at 101.1 when the general consensus was for a number closer to 97, after last month’s 96.7. More data is due on Friday at 1:30pm for Non-Farm Payrolls, employment data is considered as extremely important to determine possible monetary policy timing, as the Federal Reserve has repeatedly made it clear that employment is one of the main factors in deciding future interest rate hikes. The market has a consensus forecast of 180k new jobs, with last month’s number coming in at a surprise 255k.
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