The US dollar rose against most of its rivals today and is on its way to the biggest weekly gain over the last six weeks as optimism over tax adjustments is rising. The dollar index rose to 94 levels by more than 1% throughout the week, the biggest gain since late October.
The agreement on the final bill is a matter of time before the Dec. 22 deadline. This will strengthen the Federal Reserve's monetary policy and help it continue to raise interest rates next year. The US Federal Reserve will meet next week and is widely expected to be raising rates for the third time this year to 1.50%.
Today, employment data in the US government non-farm sector has released, which is also one of the main drivers of the Fed’s tightening monetary policy. The continued strong upturn in the labour market will support relatively weak inflation recovery and the economy added 228,000 jobs in November, Unemployment rate stabilized at 4.1%, and wages rose by 0.2%, US dollar Was largely unaffected by the fact that the markets priced in a positive continuation of the data and in terms of a downward revision of previous readings.
The British pound was the exception against the US dollar, climbing to a near weekly high and trading currently at 1.3470, as Britain and the European Union reached a trade agreement for the post-Brexit and transition period. The European Commission stressed that enough progress had been made on the Irish border issue and that progress would be conveyed to EU leaders at the summit next week.
Also, sterling hit its highest level against the euro in six months as the EURGBP dropped to 0.8688 levels. Sterling rose also to a one and a half year high against the yen.
