The dollar made strong and swift gains against sterling and the euro in a fairly frantic hour or two yesterday lunchtime. The prompt was the message coming through that interest rates are unlikely to fall in 2023 and could continue rising, as the US economy continues to shrug off downturn fears.
There will be further evidence of that with non-farm payrolls, one of America’s most influential monthly data releases, coming out at 1.30pm UK time.
In the latest balance of trade data, the US trade deficit narrowed to $61.5bn in November, which was the lowest markets have seen since September 2020 and well below forecasts. The deficit reflected a decrease in the goods deficit of $15.3 billion to $84.1 billion and an increase in the services surplus of $1.0 billion to $22.5 billion
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USD/GBP past year
