Currency Note US Dollar

US dollar waits for the start of tapering

By Ricky Bean December 9th, 2013

The US dollar had another encouraging day on Friday, as the ever important non farm payrolls figure exceeded market estimates. This release showed jobs gains in excess of 200,000 for the second consecutive month for the first time in nearly a year, and as a result more people felt a December taper to quantitative easing program was a viable proposition. This result, coupled with the news that the overall unemployment rate had fallen to a 5 year low of 7% in October puts increased pressure on the central bank to taper sooner rather than later. In spite of this, a survey still showed that only 34% of economists thought that we could see a taper in December, with 40% giving March as their expected start date. There is some influential data towards the end of the week, but before then, investors will pay attention to comments made from a member of the Federal Open Market Committee today as they look for any clues as to when the tapering is likely to begin. A few smaller releases could combine mid week to help the currency along, before Thursday brings the monthly core and general retail sales figure, alongside more labour data in the unemployment claims. Friday then heralds the opportunity for one last push, with the Produce Price Index seeing out the week. Call your trader now to hear the latest US dollar rates, with tapering on everyone’s minds.