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USD: good day for dollar as expectations of interest rate hike continue

By Callum Holmes November 8th, 2017

The dollar performed well yesterday, strengthening against both the euro and sterling as expectations surrounding a US interest rate rise in December continue apace. Fed Chair Janet Yellen has alluded to the possibility before and the recent run of positive data coming out of America will only serve to encourage investors that a hike will occur before the year is out.

Indeed, yesterday the economic optimism index rose by 6.6% to 53.6 for November 2017 against an expectation if 51.2. The figure is the highest for eight months and demonstrates an overall optimism surrounding the US economy.

It is a quiet day for economic data tomorrow, so attention will turn to any political stories that could surface.