With more hawkish commentary from certain Federal Reserve members foretelling potential interest rate increases, the upcoming report due later in the session from payroll processor ADP could spur further rate hike speculation. The US dollar is currently hovering close to a two-month high against a basket of currencies, buoyed by higher Treasury yields and hawkish comments from Fed’s Loretta Mester. The dollar index last stood at 95.989, just below its August 9th high of 96.442. The greenback started the week on a strong footing following a better than expected survey of the US manufacturing sector. Should the upcoming ISM non-manufacturing data and Markit Services PMI also beat expectations, it could heighten upward dollar momentum higher. US equity markets closed marginally lower on Tuesday as a result of a stronger dollar amid growing expectations that monetary tightening would lead to a massive reallocation of investment capital globally.
Pound at Lowest Since 1985 Ahead of Labour Data
Daily Analysis - 05/10/2016