Economic Round-up, U.S. Dollar Strengthens

On Tuesday the U.S. dollar continued its climb strengthening with the Dollar Index at above 92.50 levels.

Since April 17 the dollar has gained 3.93 percent to above 10 week high levels, the rally in the dollar was not impaired even though the U.S, jobs report showed lower than expected increases.

Fed Leaves Interest Rates Unchanged

The Federal Reserve held interest rates at their last meeting on Friday at 1.75 cents which was widely anticipated by markets.

U.S. Non-farm Payrolls

The report by the Fed came after the release of the U.S. non-farm payrolls report which showed an increase of only 164,000 jobs added compared to the forecast by analysts of 189,000. The average hourly earnings were at 3.1 percent compared to an expected 0.2 percent.

Dollar Shrugs of Report

The release of the data had little effect on the U.S. dollar which continued its rally to a five month high and is now over 74 percent since the selloff in December.

Solid economic data has also supported the dollar which has been helped by the tax cuts and spending with traders buying back dollars.

Look Out for Next Fed Meeting

The next Fed meeting in June is expected to result in interest rate hikes is likely to affect the dollar which at the moment is being propped up by strong treasury yields.

Key Development

The historic key development will be the decision by U.S. President Trump’s decision on whether he will pull out of the Iran nuclear deal (which is widely anticipated) on May 12.

Market Volatility

Markets are expected to see volatility leading up to his decision, with West Texas crude oil prices gaining over 14 percent so far since February leading up to May 12.

Weakness in the Euro

A slide is expected to continue for the euro which has been in a downward trend since the middle of April and is 3.5 percent lower against the dollar. On Monday the euro was at a four month low at $1.1987.

Upcoming Calendar

On May 10 the Bank of England and the Reserve Bank of New Zealand will release their data, with decisions regarding interest rates. Both are expected to hold interest rates with no changes.


Gold gained breaking 1,308 level and falling to 1,301 level on the back of a strong dollar and remains volatile.

Today’s traders and investors are discerning, so choosing the best Forex and CFD’s broker is of utmost importance for realizing investments.

The best part is ……………….

Right now traders can realize their investments with one of the most reputable brokers in the market, 24option.

A pioneer in brokerage they have been able to enhance their reputation over the years (as many traders testify to, see their reviews and comments). They are regulated and authorised by various financial institutions and offer some of the best perks and incentives in the market today.

Below are a few of their perks and reasons to trade with 24option.

• New enhanced and easy to use platform with all trades accessible from one screen. They offer unique tools which includes financial graphs and live news feeds
• Highly competitive
• 150 underlying assets to choose from of commodities, stocks, indices, currency pairs and cryptocurrencies like Bitcoin, Litecoin, Dash, Ripple and Ethereum
• Trading and customer support around the clock 24/7
• Quick and uncomplicated sign-ups
• Demo account

Visit 24option Site

Risk Warning: Trading forex and/or CFDs involves significant risk of loss. CFDs are leveraged products and it is possible to lose more than your initial investment.


We will be happy to hear your thoughts

      Leave a reply