Week in FX Americas Obama’s Dollar Gets a Helping Hand

President Obama has got to have a smile on that poker face of his, especially after a ho-hum showing at the debate this week. Non-farm payrolls are coming up trumps and in favor of his administration, more so now than a couple of months ago.

The US unemployment rate has fallen (+7.8%) to its lowest level since his inauguration as the economy continues to add jobs. A sign of steadier economic growth may help the Presidents campaign to win a second term in office. US payrolls increased by a seasonally adjusted +114k jobs in September, despite being below the general forecast by -4k, the previous two months were revised higher by a collective +86k jobs.

Friday’s print is also the next-to-last snapshot of the US labour market before November’s election. The October release comes out only a few days before voters go to the polls; possibly too late to sway voter’s minds. For now, the pro risk trade does not favor long dollar positions. Let’s see what happens after the long weekend!


WEEK AHEAD

  • EUR German Trade Balance (euros)
  • USD Fed Releases Beige Book Economic Survey
  • JPY Machine Orders (YoY)
  • CNY New Yuan Loans
  • AUD Unemployment Rate
  • JPY Consumer Confidence
  • EUR German Consumer Price Index (YoY)
  • EUR ECB Publishes Oct. Monthly Report
  • USD Trade Balance
  • JPY IMF, World Bank Group Annual and Spring Meetings
  • USD Producer Price Index Ex Food & Energy (YoY)
  • USD U. of Michigan Confidence


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell