US dollar is heading higher today, thanks in large part to the latest data releases. With the economic outlook for the United States continuing to improve, some analysts are still predicting another rate hike in March, while other think that the Fed will rate a little longer.
Rate hike hopes are still alive for some analysts. The latest data out of the United States shows that the unemployment rate dropped to 4.9 per cent, the lowest it’s been in eight years. The labor market news is a little mixed, though. Even with the drop in the unemployment rate, the nonfarm payrolls number didn’t come in as expected. Manufacturing did better than expected, though, and that is adding some hope to the economy. Some analysts are still looking to another rate hike in March, while others think it will be closer to the end of the year before another rate hike arrives. Those expecting another hike to be put off until next year are dwindling in number. The prospect of a hike is sending the greenback higher today, even as stocks drop. At 16:25 GMT EUR/USD has dropped to 1.1124 from the open at 1.1206. GBP/USD is down to 1.4489 from the open at 1.4585. USD/JPY is higher, moving up to 117.1810 from the open at 116.7630. If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.
http://www.earnforex.com/news/2016/02/05/economic-data-helps-us-dollar/