The US dollar exchange rate has outclassed its most important competitors for 2 days in a row. The US dollar index has reached its highest value in 2 weeks. Right now, the dollar index has reached 104.00. One of the main reasons likely has to do with the increase in anticipation of upcoming job data for the US.
The ADP Employment Change data is coming for the month of November soon and is already having a noticeable impact on the best dollar rate. There are also the upcoming Goods Trade Balance and Unit Labor Costs data points, indicating the performance for the quarter.
We have already seen the service sector exploding in size for November. This was in marked contrast to October’s figures as job opening numbers declined.
The dollar’s upswing has also meant it has outpaced its competitors. The EUR/USD rate, for example, has finally succumbed to downward pressure. It has lowered for 5 days in a row, in fact. As of Wednesday, it stands at around 1.08. Retail Sales data will also have an effect soon enough on this figure.
USD/CAD has risen to around 1.36, although Wednesday morning did see a minor decline. Traders are awaiting data coming from the Bank of Canada, which may have direct effects on the US dollar exchange rate. So far, they seem to be expecting the interest rate policy to stick around 5%.
Then there is the GBP/USD rate. It has also lost out against a rising dollar, finding a stable point where you can buy dollars for £1.26. The Bank of England is ready to make a statement regarding this situation soon enough.
Finally, there is the USD/JPY rate, which has lowered slightly to around 147. Notably, the BoJ has stated that they do not plan to make any significant changes to their monetary policy for the time being.
