Janet Yellen Hawkishnya testimony in front of the parliament and the improvement in US employment data has led the US dollar strengthened against all major currencies last week. Yellen said that the increase in the benchmark interest rate the Fed may be done in December as long as supported by fundamental data. With October employment data were unexpectedly much better than the market forecast makes that possibility even greater. Non-Farm Payrolls (NFP) in October increased 271 000 jobs, the highest increase so far this year, while the average wage per hour (average hourly earnings) rose 0.4%, higher than the estimate would rise 0.2% and was the highest increase since the month July 2009. The unemployment rate back down to 5.0% figure, the lowest since 2008.
Post-release employment data on Friday last week, forecasts a possible increase in the Fed's benchmark interest rate in December according to the Fed Funds Futures was 72%, up from the previous 56%. Until the release of employment data next on 4th December, sentiment towards the USD expected to remain positive. For this week's important data from the US retail sales in October and consumer confidence index UoM version that will be released next Friday.
Post-release employment data on Friday last week, forecasts a possible increase in the Fed's benchmark interest rate in December according to the Fed Funds Futures was 72%, up from the previous 56%. Until the release of employment data next on 4th December, sentiment towards the USD expected to remain positive. For this week's important data from the US retail sales in October and consumer confidence index UoM version that will be released next Friday.
The focus this week is data Flash GDP Euro area 3rd quarter which will also be released later Friday. Responding to the global economic slowdown, the meeting of the European Central Bank (ECB) October 22 president Mario Draghi plans to cut deposit rates and add stimulus at a meeting in December if the data inflation and growth is worse than ever. Thus the 3rd quarter GDP data will be crucial. With annual inflation negative, if GDP is lower than the previous quarter grew 0.4% then it is likely the ECB will add to stimulus or cut the deposit rate at meetingnya next month that will further depress the exchange rate of the Euro currency.
Data and other important events is China's annual inflation, Jobless Claims and the index of the average wage in the UK, Australia Employment Change, US PPI, GDP Germany, Mario Draghi's speech, Mark Carney, Graeme Wheeler and members of the FOMC.
Data and other important events is China's annual inflation, Jobless Claims and the index of the average wage in the UK, Australia Employment Change, US PPI, GDP Germany, Mario Draghi's speech, Mark Carney, Graeme Wheeler and members of the FOMC.
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