Forex

Dollar surpassed its peers ahead of U.S. employment data release; U.S. tax reform progress also supported the greenback

US dollar index

The U.S. dollar touched its best level since mid-August against major opposing currencies on Friday after being lifted up by u.S. tax reform progress expectations.

The index which measures the value of the greenback against its major peers, the U.S. dollar index, was slightly higher by 0.1 percent at 94.097 after reaching a seven-week high at one point on the same day at 94.112.

Investors have shifted their attention on the upcoming report of the U.S. employment figures for the month of September which is scheduled to be released anytime this day. The jobs data is widely forecasted to show a stagnant growth in the private sector, which is the result of the previous Hurricane Harvey and Irma last month.

United Overseas Bank in Singapore’s head of market strategy Heng Koon How said the projections were somehow lowered after the strong hurricanes and any number above the 100,000 handle would be an upbeat surprise. Meanwhile, economist’s from Reuters polled that the employment data will suggest non-farm payrolls added 90,000 jobs on September after advancing by 156,000 on the month before.

Republicans on the Congress are currently making progress on enacting the U.S. tax code last Thursday. This came in with the House of Representatives, which are controlled by the Republicans, to approve a fiscal spending blueprint for next year to support hastening the said tax reform.

Expectations that the U.S. Federal Reserve will incite an interest rate hike this December, firm U.S. economic figures and hopes for progress on U.S. tax reforms have been supporting the dollar this past weeks.

 

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