On Friday last week the US released both Non-Farm payrolls and Unemployment data, both of which were worse than expected. The Unemployment rate increased from 4.9% to 5%, whilst there were 20,000 less jobs than expected in the non-farm sectors for September. The announcement did provide some respite for Sterling, causing Cable to jump over a cent.

Whilst the data was disappointing the main concern will be whether this will have an effect on the likelihood of a Federal Reserve interest rate hike. At the moment the hike looks likely to come before the end of the year, however poor economic domestic conditions could once again weaken the chances of the Fed acting.

Donald Trump Losing Momentum

There has been further controversy for Trump as footage of comments he made 11 years ago has surfaced. He made lewd remarks about women whilst advertising his US Apprentice TV show. The comments have led to 12 Republican Party members withdrawing their support for Trump which has left the party in a difficult predicament. The party are said to be heavily considering if Trump is still the right person for the job, with many believing they will certainly lose the election if he continues.

Last night Clinton and Trump had their second debate, where Trump suggested that his comments were locker room talk and not representative of him. However Clinton replied suggesting that it’s exactly who he is as we keep seeing it.

The debate was fought over many of the usual talking points with taxes, email servers and sex scandals taking centre stage. The consensus seems that Clinton could have put the election to bed after some of the latest controversies; however it seems Trump is still just about hanging in there.

What to expect this week

There is a busy week for the Dollar with data loaded at the end of the week. On Wednesday there will be Federal Reserve meeting minutes which provide an insight into the thoughts of committee members who vote on the interest rate changes. Furthermore there will be export and import price indexes, showing the change in the costs of goods over the last month. Finally on Friday there will be Retail Sales data, Reuters Consumer Sentiment index and a speech from Chairlady Janet Yellen. Considering there is so much information being released, alerting your account manager to your requirements could be the difference to trading at the best levels.

The US elections will likely create a period of volatility for the US Dollar in the coming weeks. Speak to our brokers today on 01494 725 353 if you have an upcoming currency transfer that needs attention.


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