The dollar was strong yesterday as fear of further retaliation from Iran waned. After striking a US air base in response to the US missile strike which killed their top general, Iran said that their response was “proportionate” and indicated that there would be no further retaliation. However, it could be said that tensions are far from over, as Iran is still expected to try to remove US forces from Iraq.
The greenback found additional support from a strong ADP jobs report, which showed that private businesses in the United States hired 202,000 workers during December 2019, the most since April and well above market expectations of 160,000.
Today, there will be a series of speeches from Federal Reserve officials, which are expected to hint at the Fed’s future stance to interest rates. Tomorrow, Non-Farm Payrolls will be released, which give a good insight into the health of the US economy.
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