FX.co ★ The dollar rally may continue

The US dollar has already received notable support on Thursday amid positive statements of the Fed members, as well as good economic data on the number of applications for unemployment benefits and trade surplus. Today, its rally may continue if data on the number of new jobs in the non-agricultural sector in the US will show growth above the forecast.

On Thursday, Fed members J. Williams and E. George made it clear that they continue to expect an increase in interest rates. The head of the Kansas City Federal Reserve, E. George, simply called for further plans to raise interest rates, while San Francisco Fed President J. Williams said he expects another rate hike this year, as well as three more in the next year of 2018.

In addition, FRS representatives P. Harker and J. Powell also commented yesterday. However, they did not comment on the outlook for monetary policy. Powell is considered cautious in the decision to tighten monetary policy while Harker is known for supporting the policy of continued rate growth.

An additional positive for the dollar was the release of positive data on the number of applications for unemployment benefits in the US over the past week. Investors took these figures as a positive signal about the impact of ts of the three hurricanes, which hit the US south in September and caused material damage. The number of applications fell by 12,000 to 260,000, and a further decrease to 265,000. Moreover, the trade balance surplus was positive, adding to 42.40 billion dollars in August against the July value of $ 43.60 billion. It increased to 42.70 billion dollars.

Today, the focus of the market is the output of data on the number of new jobs in the non-agricultural sector in the US. If they show growth above expectations, it can stimulate the dollar to continue its rally.

Forecast of the day:

The EURUSD pair fell below the resistance level of 1.1745 on the wave of the publication of the minutes of the September meeting of the ECB, which revealed a high degree of concern about the bank's growth in the euro and the fear that the elimination of incentive programs would undermine the beginning of economic growth. Given this, and also probably the positive employment data in the United States, the pair may continue the downward trend towards 1.1625-30.

The GBPUSD pair fell below the 1.3155 level, which due to a fall in the expectation of a rate hike by the Bank of England, could lead to a price drop to 1.2965. An additional incentive to this may be today's data on the number of new jobs in the US, if they are above forecasts.