07/11/16 - Clinton Cleared By FBI Again USD Rallies

USD

 

U.S. employers maintained a strong pace of hiring in October and boosted wages for workers, improving  the case for a December interest rate increase from the Federal Reserve. Non-farm payrolls increased by 161,000 jobs last month amid gains in construction, healthcare and professional and business services.

Average hourly earnings rose 10 cents or 0.4 percent in October. The year-on-year gain in wages last month rose to 2.8 percent, the largest increase in over 7 years. Though the U.S. central bank is expected to increase interest rates next month, that decision will likely depend on the outcome of Tuesday's election With trump indicating he will seek an new candidate to head the US Fed if elected.

On Friday According to polling  Clinton’s lead over Trump had shrunk sparking an attack of nerves among many investors, who view him less favorably. 

However over the weekend the USD rallied and US stock futures rebounded as  the FBI decided to stick by its finding that Hillary Clinton didn’t commit a crime in her handling of e-mails as secretary of State. Last week the dollar sold off as  FBI Director James Comey informed Congress in a letter on Oct 28 that the agency, was examining new e-mails potentially related to its investigation of Clinton’s use of a private e-mail server. 

Trump unsurprisingly lashed out at the decision saying it would have been impossible for the organisation to go through hundreds of thousands of emails in such a short amount of time, adding that she is being "protected by a rigged system". 

 

GBP

Birds Eye and Walkers are following in the footsteps of Unilever in raising their prices following a slump in the value of the pound after Brexit. Frozen food brand Birds Eye could raise prices by as much as 12 per cent in the next month according to a report on Sunday, and pack sizes could shrink to counter increased costs with the number of fish fingers per packet falling from 12 to 10 or from 20 to 18. Pepsi Co-owned Walkers is also having to raise prices by as much as 10 per cent. 

Inflation could be up to four per cent next year analysts have warned as sourcing costs rise on the back off a weaker pound, BoE Govenor mark Carney also agreed last thursday that the UK would come under significant inflationary pressure in 2017

 

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