A possible recount in key states?

Green Party candidate Jill Stein has now raised over $6million Dollars in a bid for recounts in key states including Wisconsin, Pennsylvania and Michigan. Clintons counsel have confirmed that they will support Steins Campaign. It’s no surprise President- Elect Donald Trump has taken to Twitter to express his views. He has called the whole situation a ‘scam’ and went on to state ‘he would have won the popular vote if you deduct millions who voted illegal’. It’s key to note the President-Elect couldn’t back up his bold statement.

Non-Farm Payroll and Unemployment numbers set to take centre stage this week

Friday the US are set to release their latest Non-Farm payroll (number of jobs created in non-agricultural businesses) and unemployment numbers (unemployed workers divided by the total civilian workforce). The data releases could be a major factor whether the US decide to hike interest rates or keep them on hold at 0.5%. Payroll numbers are set to exceed last month’s figure at 172k and unemployment should hold steady at 4.9%.

Interest rate hike or no interest rate hike?

Towards the end of 2015, December to be precise, the Federal Reserve hiked interest rates from 0.25% to 0.5%. At this point Chairlady Janet Yellen predicted four interest rate hikes throughout 2016 however so far rates have remained unchanged at 0.5%.

The next interest rate decision for the US is on the 14th December, and economists are split on the outcome. President- Elect Donald Trump believes economic data supports the hike but political uncertainty is the reason why the FED have been hesitant in raising.

Last week, I thought there was a good chance the FED would raise rates as long as the Non- Farm Payroll and unemployment numbers impressed. However if there is a chance of a recount in the key battleground states this could cause some uncertainty for the dollar and therefore could be a reason why the US decide to hold off until 2017.

selling US Dollars for the remainder of the year the interest rate decision next month could have a major impact on the exchange rates you receive. To be updated regularly feel free to contact your account manager. Alternatively, if you would like to discuss a currency requirement with one of our team, call our trading floor on 01494 725 353 or email me here

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