The world's reserve currency held on to its two-week height against the monetary unit of Japan on Monday as two U.S. Federal Reserve officials prepare for their respective speaking engagements early in the trade week, Bloomberg reports.
After the U.S. Department of Labor released stronger than forecast economic data this past Friday, a certain scrutiny is focusing on indications about whether the central bank of the U.S. will cut monetary stimulus measures sooner than anticipated. Minneapolis, Minnesota President Narayana Kocherlakota and Atlanta President Dennis Lockhart are scheduled to speak on Tuesday.
"The dollar has come off slightly, but the defining factor is the rise in the U.S. yields," currency strategy head Jeremy Stretch with CIBC World Markets told Reuters on Monday. "The dollar will be supported and for the euro any bounce towards $1.34 will be sold into."
The U.S. dollar rose about 1 percent on Friday against the currency of the Pacific Rim nation and has climbed 1.7 during the past two weeks.
The U.S. Labor Department said on Friday that the economy created 204,000 jobs in October, exceeding economists' projection of 125,000, according to Reuters.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.