Friday saw better than expected job data out of the US to exceed market expectations by some margin, reinforcing that the US economy was very much in a robust state heading into the New Year. The numbers released saw the Dollar continue its relentless charge with no signs of stopping in the near term.
The Pound hit fresh 15-month lows against the Dollar this morning while markets brace for choppy waters surrounding the UK’s economy.
Currently the Pounds pressure is heavily ‘self-inflicted’ with the domestic outlook showing next to no chance of a significant fight back, at least for the short term. With inflation causing havoc it suggests that interest rates will stay higher for longer.
The Euro also suffered a beating following the job numbers from across the pond with EUR/USD hitting levels of 1.02, lows not seen since November 202. With nothing on the horizon to boost potential growth in Europe and the US continuing to gain traction ahead of Trump taking office, it isn’t looking exactly favorable for traders and investors to hold Euros.
Could we see parity of EUR/USD?
With some key inflation data out later this week and markets continuing to adjust, there is room for further volatility to be seen, however it looks as if something significant is to stop the US Dollars surge. –
-Oakleigh Exchange-