Currency Note US Dollar

Strong data today could be a further big push for the US dollar

By Ricky Bean November 6th, 2015

The US dollar has been the big winner this week as the “possibility” of a US interest rate rise in December increased. “Possibility” was the word used by Janet Yellin, Chairman of the Federal Reserve, and US data releases this week have generally been supportive of this outcome.

Also any movement of the dollar against sterling and the euro was helped by news from the UK and the Eurozone. The American currency was able to strengthen by two cents against both currencies, thanks to European Central Bank (ECB) Chairman Draghi’s comments earlier in the week and the negative outlook following the Bank of England’s quarterly inflation report.

Main data releases today for the US dollar include Average Hourly Earnings, the unemployment rate, and the all-important non-farm employment change. These are all expected to show growth on the previous month, after the non-farm employment indicator that was released on Wednesday showed positive signs.