Hello everyone, as we all know the market action discounts everything.
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The dollar rose slightly on Friday, ahead of the release of the latest monthly U.S. jobs report, which might solidify a faster pace of tapering and, potentially, early interest rate hikes despite the omicron-induced uncertainties.
The Dollar Index, which measures the value of the US dollar against a basket of six other currencies, climbed 0.2 % to 96.305, slightly higher for the week. That would be the sixth weekly gain in a row.
The EUR/USD declined 0.1 % to 1.1284.
Daily Support & Resistance points :
support Resistance
1) 1.1279 1) 1.1334
2) 1.1260 2) 1.1368
3) 1.1225 3) 1.1388
The GBP/USD dipped 0.2 % to 1.3279.
Daily Support & Resistance points :
support Resistance
1) 1.3273 1) 1.3337
2) 1.3240 2) 1.3368
3) 1.3209 3) 1.3401
The USD/JPY increased 0.2 % to 113.34.
Daily Support & Resistance points :
support Resistance
1) 112.79 1) 113.43
2) 112.43 2) 113.71
3) 112.15 3) 114.07
The AUD/USD sank 0.4 % to 0.7066, just above its 13-month low of 0.7063.
Daily Support & Resistance points :
support Resistance
1) 0.7077 1) 0.7114
2) 0.7062 2) 0.7136
3) 0.7040 3) 0.7152
The dollar gained ground this week after Federal Reserve Chair Jerome Powell testified to Congress that inflation would remain high for longer than the central bank had predicted, and that Fed policymakers would consider a faster tapering of the central bank's bond-buying program at their December meeting.
This hawkish tone was maintained on Thursday, with San Francisco Fed President Mary Daly stating it may be time to "start building a plan" to raise interest rates to battle inflation, and Richmond Fed President Thomas Barkin discussing "normalizing policy."
Money markets are once again predicting that the central bank would raise its benchmark rate by 25 basis points at its June 2022 meeting, as they did before the first news about Omicron.
The focus now shifts to the release of the monthly official jobs report in the United States for signs that the labor market is strengthening. The report's generally definitive signals, however, are likely to be muffled by the fact that it predates the advent of the new version.
Nonfarm payrolls are predicted to have climbed by 560,000 in November, up from 531,000 in October, while the unemployment rate is expected to fall to 4.5 percent from 4.6 percent in October.
However, both the ADP private payrolls on Wednesday and the initial unemployment claims on Thursday were greater than predicted, indicating that a positive surprise is a possible possibility.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The dollar rose slightly on Friday, ahead of the release of the latest monthly U.S. jobs report, which might solidify a faster pace of tapering and, potentially, early interest rate hikes despite the omicron-induced uncertainties.
The Dollar Index, which measures the value of the US dollar against a basket of six other currencies, climbed 0.2 % to 96.305, slightly higher for the week. That would be the sixth weekly gain in a row.
The EUR/USD declined 0.1 % to 1.1284.
Daily Support & Resistance points :
support Resistance
1) 1.1279 1) 1.1334
2) 1.1260 2) 1.1368
3) 1.1225 3) 1.1388
The GBP/USD dipped 0.2 % to 1.3279.
Daily Support & Resistance points :
support Resistance
1) 1.3273 1) 1.3337
2) 1.3240 2) 1.3368
3) 1.3209 3) 1.3401
The USD/JPY increased 0.2 % to 113.34.
Daily Support & Resistance points :
support Resistance
1) 112.79 1) 113.43
2) 112.43 2) 113.71
3) 112.15 3) 114.07
The AUD/USD sank 0.4 % to 0.7066, just above its 13-month low of 0.7063.
Daily Support & Resistance points :
support Resistance
1) 0.7077 1) 0.7114
2) 0.7062 2) 0.7136
3) 0.7040 3) 0.7152
The dollar gained ground this week after Federal Reserve Chair Jerome Powell testified to Congress that inflation would remain high for longer than the central bank had predicted, and that Fed policymakers would consider a faster tapering of the central bank's bond-buying program at their December meeting.
This hawkish tone was maintained on Thursday, with San Francisco Fed President Mary Daly stating it may be time to "start building a plan" to raise interest rates to battle inflation, and Richmond Fed President Thomas Barkin discussing "normalizing policy."
Money markets are once again predicting that the central bank would raise its benchmark rate by 25 basis points at its June 2022 meeting, as they did before the first news about Omicron.
The focus now shifts to the release of the monthly official jobs report in the United States for signs that the labor market is strengthening. The report's generally definitive signals, however, are likely to be muffled by the fact that it predates the advent of the new version.
Nonfarm payrolls are predicted to have climbed by 560,000 in November, up from 531,000 in October, while the unemployment rate is expected to fall to 4.5 percent from 4.6 percent in October.
However, both the ADP private payrolls on Wednesday and the initial unemployment claims on Thursday were greater than predicted, indicating that a positive surprise is a possible possibility.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.