The US dollar rallied through trade on Wednesday and the overnight following commentary from Fed Chair Jerome Powell. Powell suggested the U.S economy was continuing to grow at a rapid pace and signs were “remarkably positive,” intimating the Fed will continue to raise interest rates as planned. A series of hawkish Fed commentary has helped fuel support in the week since the Fed opted to increase interest rates for the 3rd time this calendar year, driving the Greenback to fresh six-week highs.
The US dollar continues to outperform its counterparts as domestic economic strength offers a stark contrast to the broader global economy. The Eurozone, UK, Japan, and other larger economies both developed and emerging continue to show signs of a material slowdown while the US continues to perform at or above market expectation, evidenced by a 21 year high in Services sector activity through September.
Attentions now turn to Friday’s Non-farm payroll figures with emphasis directed to average hourly earnings and any significant labor market strength which directly impacts wage growth. Trade Balance numbers are also out tomorrow at 8:30 am. US equity futures are pointing to a soft open for US markets.