The dollar is going from strength to strength, spurred on yesterday against the euro by poor economic growth forecasts from the ECB.
As a result of Europe’s decision to ease monetary policy, European bond yields have tumbled, causing the euro to drop further against the dollar. The pound also weakened against the dollar due to Brexit negotiations reaching an impasse with Brussels.
The dollar still remains strong against most major currencies, despite figures revealing that the US trade deficit hit a 10 year high in December. US non-farm payrolls are due out today alongside unemployment and average earnings. Should the data come in line with expectations, the dollar should strengthen, particularly if average earnings have increased.
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