020 7898 0500The US dollar dropped briefly on Friday when non-farm payrolls data came in much weaker than expected. However, expectations for further interest rate hikes helped the dollar rally back quickly. The markets are pricing in two further rate hikes in 2017.
Non-farm payrolls increased by just 98,000 jobs, the fewest since May 2016, as the retail sector shed more jobs for the second month running. The markets had priced in a figure of around 180,000. Good news, however, was that unemployment was down to 4.5% from 4.7%. This was what kept hopes for further interest rate hikes alive.
This week the markets are likely to again focus on the likelihood of further interest rate hikes in the US.
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