US Dollar: forecast for November 9-15
By Kira Iukhtenko
It was a profitable week for the US dollar. The greenback rose to a 7-month high versus the euro on strong labor market figures. US economy added 270K new jobs in October, while unemployment declined to 5%.
The US Dollar index jumped above 99 points on the news and is now close to its historical high of 100.30 (March 2015 high). We expect this level to be broken in the near term.
Strong data give the green light for a first rate hike in December. According to the futures market, a 70% possibility is now priced in. These expectations open a long bullish road to the US currency.
Economic calendar for the new week is rather light. We’ll focus on the retail sales on Friday – growth is expected. However, be ready for some pullbacks in USD, as the currency already is oversold.