USD: Dollar boosted by rates comments and best jobs data for 44 years

The US dollar has enjoyed a good week. While UK and European information is dominating the market, hawkish comments surrounding the Federal Open Market Committee (FOMC) have helped to boost the dollar’s position. Investors are keeping a keen eye on this. However, there is an underlying concern that Donald Trump’s administration do not have a clear policy on the dollar, which could be cause for concern further down the line.

In spite of this, yesterday, the data for last week’s US jobless claims came out, which almost reached a 44-year low. Initial claims for state unemployment benefits dropped by 19,000 to 223,000 for the week commencing 19th February. This is the lowest level since March 1973 – boosting sentiment for a further rate hike in March and supporting the dollar well.

For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.