Currency Note US Dollar

Will today’s labour data support the US dollar?

By Smart Currency November 8th, 2013

The US dollar had a mixed week with data ebbing and flowing on various days. Speculation surrounding the potential tapering of the Federal Reserve’s quantitative easing program has dictated US dollar movements this week with the market focussed on today’s key labour data which will portray the overall rate of unemployment and the highly influential non-farm employment change. The data released this week has increased speculation that we could see the Federal Reserve taper at its December meeting as it has been positive to date. ISM non-manufacturing Purchasing Manager Index beat market estimates and the unemployment claims came out as expected; but the biggest catalyst for this positive sentiment was the strong advanced growth figures that were released yesterday. All eyes will be on the labour data released today, strong data will add fuel to the fire that we could see a December taper. Call your trader now, as the dollar finishes the week with potential high volatility.