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USD: dollar surges against sterling despite some disappointing data

By Ricky Bean November 3rd, 2017

The dollar enjoyed a brilliant day against the pound yesterday following the bearish sentiments expressed in the BoE meeting minutes. While rates were hiked, Carney urged caution and essentially hinted that any rate increases in the future would be small and irregular. Traders piled into other currencies as a result and sterling weakened.

Meanwhile, Donald Trump announced that he would be replacing current Federal Reserve Chair Janet Yellen with Jay Powell. This was welcomed as it ensured continuity as the Federal Reserve and limited politicization of such a key role.

Jobless claims came in at 229,000 against an expectation of 235,000 which was slightly disappointing, but attention will be turned to today, when we’ll see the balance of trade, unemployment rate, non-manufacturing PMI, and the all-important non-farm payrolls. We can expect some further strengthening against the pound irrespective of these readings.

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