020 7898 0500Better than expected employment figures from the U.S. private sector yesterday meant the US dollar rose against the majority of its rivals, with sterling being the only major currency it fell against. Automatic Data Processing, Inc. (ADP) reported the largest increase in private sector jobs in thirteen months, 238,000. This increased speculation that we could see the Federal Reserve taper once again at the central bank meeting in 3 weeks’ time. The minutes from last month’s meeting revealed that most the members of the Federal Open Market Committee were in support of the central bank’s decision to taper its quantitative easing program, furthermore, that they felt the benefits of the monthly bond purchases were waning. However, the central bank stressed that the continued tapering of the quantitative easing program is not on a pre-set course and would be dependent on economic data – especially an improving labour market. Out today we have the weekly unemployment claims figures; however, the market will be looking towards tomorrows highly influential Non-Farm Employment Change figures alongside data showing the overall rate of unemployment in the county. Get in touch with your trader for the latest on the US dollar.
