Jan 09 2015

Rate Range Projection by Bank

Next week 118.00- 121.00

Next 3 months 115.00 - 125.00

The dollar declined against most major counterparts after an unexpected drop in U.S. wages added to speculation the Federal Reserve won’t be in any hurry to raise interest rates. Traders increased bullish bets on the U.S. currency to a record high this week.

 

A gauge of the U.S. dollar slid from the highest in a decade as hourly earnings for all employees dropped by 0.2 percent in December, the biggest since comparable records began in 2006, a Labor Department report showed. The Russian ruble, the Norwegian krone and Canadian dollar fell as Brent crude fell to an almost six-year low. Brazil’s real added to the week’s best performance among major currencies.

 

Matt Weller, an analyst at Gain Capital Holdings said “We had the strong quantity of jobs, but the quality was the part that suffered -- that really surprising drop in wages a slowing inflation in the U.S., combined with concern that Europe and Japan will struggle to fight deflation, will definitely cause the Fed to tap the brakes.”