The dollar rose against many of the currencies it sustained losses against in the wake of Wednesday’s release of minutes from the Feds December meeting, from which investors and analysts were attempting to deduce the possibility of an interest rate increase in 2017.
Despite incurring a significant drop against the British pound in the two trading sessions subsequent to the release of minutes from the Feds December meeting, the dollar has risen on the buoyancy provided by the wage rise presented in December’s jobs report released Friday.
After closing at 0.81155 on Wednesday and dropping further to 0.80530 on Thursday, the dollar has managed to climb back to 0.81511 at 14:20 EST during Friday’s trading session, reversing many of the loses it sustained.
Release of the jobs report from December 2016 was a mixed picture – with a slight increase in joblessness, up from 4.6% unemployment in November to 4.7% in December, combined with an increase in wages of 2.9%, of which represents a moderate gain compared to previous years – has strengthened the dollar against many of the currencies it fell against after the release of minutes from the Feds December meeting.
However, the significant increase against the pound was contrasted against a moderate increase against the Canadian dollar, of which rose even more considerably against the U.S. currency in the wake of the Feds minutes. Closing at 1.33003 and even lower, at 1.32253 on Wednesday and Thursday respectfully, the dollar has only managed to recover moderately – with a gain of only 0.06% at 14:25 EST – significantly less than its 1.22% gain against the pound, posted at the same time.
With moderate distance to go, the dollar is looking likely to continue its rise above the peak prior to its nosedive in the wake of the release of the Fed minutes from the December meeting. However, the inauguration of Donald Trump is predicted to cause another drop in the value of the dollar, of which is predicted to further boost the level of the Dow, of which came within single digits of the coveted 20,000 mark in Friday’s trading session.
Chart from: https://www.dailyfx.com/gbp-usd
Showing daily fluctuations in value of U.S. dollar / British pound.