US Dollar: forecast for February 8-14
By Kira Iukhtenko
The US dollar had been weakening against all the major currencies last week on the back of the weak data and dovish comments of the Fed’s member Dudley. According to the futures market, the chance for a Fed’s rate hike in March fell to 13%.
However, labor market figures rendered support to the US currency on Friday. NFP came below the forecast, while unemployment fell to 4.9%. What’s more, average hourly earnings rose by 0.5%.
Next week Chinese markets will be closed, so lack of stress from this area could support the US dollar. The Fed’s chief Janet Yellen will present the semiannual monetary policy report in Congress on Wednesday and Thursday. On Friday, watch the US retail sales figures. What’s more, some more US “blue chips” will publish their quarterly reports next week.