USD – The dollar hit highs not seen in more than four months against the euro, as investors speculated further over whether recent strong jobs data could be enough to push the Federal Reserve to soon start tapering its bond-buying program.
Bannockburn Global Forex argues that “the dollar is well bid, and it’s been well bid since the middle of last week. A combination of hawkish comments from several Federal Reserve officials and the second monthly increase of more than 900,000 jobs has reaffirmed what the market has suspected, and that is for a tapering decision to be made shortly.”
GBP – Sterling rose to an 18-month high against the euro, as signs of economic recovery and falling COVID-19 rates spur expectations of a far earlier interest rate lift-off compared to the Eurozone.
Bannockburn Global Forex argues that “the dollar is well bid, and it’s been well bid since the middle of last week. A combination of hawkish comments from several Federal Reserve officials and the second monthly increase of more than 900,000 jobs has reaffirmed what the market has suspected, and that is for a tapering decision to be made shortly.”
GBP – Sterling rose to an 18-month high against the euro, as signs of economic recovery and falling COVID-19 rates spur expectations of a far earlier interest rate lift-off compared to the Eurozone.