9 Jul 2013
Flash: Fed-tapering fortunes await FOMC minutes – Investec
FXstreet.com (New York) - The USD has managed to hold its gains over the weekend after it roared higher on the back of the US employment figures on Friday afternoon, reaching its highest level in three years, notes Lee McDarby, Corporate Treasury at Investec.
The Non-Farm Payroll number was the catalyst for the US dollar rally after the monthly figure came in ahead of expectations – this was accompanied by some upward revisions to the previous two months results which means the year to date monthly average for Non-farms now stands at +202k. “The significance of these firmer numbers is that they acted to further convince the market that the Fed will taper QE in the coming few months (we may learn more about that this Wednesday evening with the release of the latest set of FOMC minutes).” McDarby adds.
The Non-Farm Payroll number was the catalyst for the US dollar rally after the monthly figure came in ahead of expectations – this was accompanied by some upward revisions to the previous two months results which means the year to date monthly average for Non-farms now stands at +202k. “The significance of these firmer numbers is that they acted to further convince the market that the Fed will taper QE in the coming few months (we may learn more about that this Wednesday evening with the release of the latest set of FOMC minutes).” McDarby adds.