December 9 2019

Dec. 6, 2019 ( – A blockbuster U.S. Non-Farm Payrolls report gave a short-lived boost to the greenback, but most dollar bulls seem to be sitting on the sidelines in expectation of the upcoming FOMC meeting on Wed., Dec. 11.

The odds of another rate cut by the Fed next week have diminished as the U.S. economy added 266k jobs in November, higher that the forecast of 180k, and more than doubling the 128k gain in jobs for October. The unemployment rate also saw an improvement with a decline to 3.5% in November from 3.6% in the previous month.

At the moment, the market consensus is for the Fed to hold rates steady within the current 1.5% to 1.75% range at its December meeting. Such decision would move the Fed into more neutral mode following a sequence of three consecutive rate cuts announced at the Fed’s last three meetings.