The dollar index has managed to bounce back last week, thereby snapping its three-week fall. This is contrary to our expectation to see the downtrend extending further. The US 10Yr Treasury yield has also risen well especially on Friday after the US jobs data release.
The nonfarm payroll in the US increased by 199,000 in November. Market expectation was to see an increase of 190,000. The unemployment rate in the US fell to 3.7 per cent in November from 3.9 per cent a month ago.
Fed meeting
All eyes will now be on the US Federal Reserve meeting outcome on Wednesday. Market widely expects the Fed to keep the rates unchanged at 5-5.25 per cent. As we had mentioned earlier in this column, there is room for another 25-basis points rate hike according to the central bank’s projection made in September.
The economic projections that will be released in this meeting will play an important…
