Dollar continues to charge through on rate outlook The dollar was lifted to a fourteen-month high yesterday against a basket of its major rivals after strong data ignited bets that the Federal Reserve will raise rates sooner. A selloff by the yen and sterling boosted dollar gains further. The greenback may continue to gain support this week as data is expected to show factory orders rose and employers increased hiring. Dollar Index rose to 83.039, its highest since July 2013 after manufacturing activity soared almost to a three-and-a-half year peak. EUR/USD slipped to 1.3110 and USD/JPY touched 105.31 its highest since January 10th. The non-farm payrolls report to be published on Friday is expected to show American employers added 200’000 new jobs. Against the single currency, the buck held near its peak this morning ahead of the European Central Bank Governing Council meeting tomorrow in which President Draghi may announce new stimulus measures to fend off deflation. French President Hollande agreed with ECB President that low inflation and stale growth were threatening the EU’s economy. Asian shares were boosted by an upbeat services activity report from China. The Shanghai Index rose more than 1 percent while the Nikkei was almost 0.40 percent higher. Good day
Posted on: Wed, 03 Sep 2014 07:38:27 +0000
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