On Friday, the US dollar was supported by data that showed U.S. job growth rebounded sharply in October. Nonfarm Payrolls indicated the US economy added 250K new jobs in October, surpassing the 190K expected, although the September headline was downwardly revised to 118K from the previous estimate of 134K. The unemployment rate remained steady at 3.7%, while average hourly earnings were up 3.1% YoY, above 3.0% for the first time in over nine years. The dollar rebounded on the news, but not by much, as investors and traders seemed more attentive to the prospect of a US and China trade deal being struck before too long. According to a Bloomberg report on Friday, Trump had asked his cabinet to draft a deal and he apparently intends to sit down to dinner with Xi Jinping in early December to nut out the detail.
In the week ahead, investors will hear from the Federal Reserve on Thursday when the central bank announces its latest policy decision, which is expected to see its benchmark interest rate target range hold steady at 2%-2.25%. There will not be an accompanying press conference.
The main event this coming week will come from the political arena with midterm Election Day on Tuesday. Most recent polling suggests the Democrats will take control of the House of Representatives while Republicans are likely to retain the Senate, though the market is actually bracing for a post-election reaction that is similar to a presidential election. Either way, this week is one where the political risk will be front and centre, no matter which way Tuesday goes.