After the nonfarm payroll report added 222,000 new positions to US economy, the US dollar is higher against most major pairs except one.
Market action was interrupted by various holidays around the world but overall the U.S. dollar continued to rebuild the momentum it had after the elections. The minutes from the U.S. Federal Reserve meeting in November sent a strong signal about a December rate hike. The CME’s FedWatch tool is showing a 93.5 probability of a rate hike on December 14.
This is a massive week for capital markets.
There are four central banks, including the Bank of England (BoE), Bank of Japan (BoJ), Reserve Bank of Australia (RBA) and the Federal Open Market Committee (FOMC) who will be keeping the various asset classes on their toes with their monetary policy announcements. None are anticipated to alter their current policies, but their noted intentions will have a lasting impact on asset prices. Perhaps, it’s a good time for the Fed to signpost a December rate hike?