US electoral year

The battles for the White House is due to take centre stage this year until November 8th when they are due to announce the new US President. Any event as large as this is going to have a huge impact on the Dollar, and wouldn’t be surprised to see large swings in the Dollar’s value in the months and weeks leading up to the event, which could start as soon as February 1st when the first round of the election process takes place. Any clients selling Dollars may want to think about getting things in order during January, before the race starts.

Week ahead for the Dollar

Turning our thoughts back to closer times, Non-farm pay rolls is the main talking point for clients with a dollar requirement this week, released on Friday. Back in November last year, the last non-farm payrolls showed a dramatic increase to 211,000 versus a predicted 201,000 highlighting the strength of the US economy and presented a very strong argument for the US to raise their base rate.

On Monday the latest set of manufacturing data is released which fell to the worst levels since 2009 in November but did little to deter the US from raising rates. On Wednesday the FOMC meeting will show the minutes from the rate hike decision last month. Any clients with dollars should watch this release carefully as it is likely to give a key insight into any further rate hikes in 2016. If you are looking at purchasing dollars, this event could provide you with some respite as it may show signs of how weary the US are about inflation and if they will go ahead with the scheduled 4 planned hikes.

For further information on future data releases that could affect any US Dollar requirement, call our trading floor on 01494 725 353 or email me directly at lme@currencies.co.uk.

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