Clinton off the hook: DXY to rally further on FBI's conclusions?

DXY should be well bid on the FBI news with targets set on a recovery back to 98.00, with the euro now testing 1.1050 and almost a cent lower in early Asia.

FBI director, James Comey write a letter to Congress and said that FBI agents have been "working around the clock" to examine the new emails but "we have not changed our conclusions" when he was referring to the FBI's initial decision that Clinton had been careless, but not criminal.

Nonfarm payrolls give green-light to Dec hike

The DXY can find traction on the idea of a Fed hike this December and less uncertainty around a Clinton victory on the back of the FBI news and a recovery through 98.00 would open the base case for an extension to the psychological 100.00 mark.

The jobs data from Friday in the US were broken down by analysts at Westpac:

"On the plus side there were healthy upward revisions to payrolls and robust earnings, but on the cautionary side the data showed a weak industry breakdown and lower participation. Oct payrolls came in just shy of consensus at +161k (+173k expected) but with very healthy upward revisions worth +44k to the prior 2 months, implying a gain of +205k jobs net of revisions. Average hourly earnings were very robust too.

On the negative side, private payrolls were a lot softer at 142k and the industry breakdown was not particularly robust - government, education&health added a combined 71k in Oct, meaning these sectors accounted for 45% of the payrolls result. Manufacturing shed 9k, retail trade shed 1k, business services softened to + 43k (vs +78k last month). Overall "good enough" jobs growth and higher earnings should cement a December Fed hike, barring a shock from this week's election."

Analysts at ING Bank, however, noted that it is not a done deal. "So with the economy creating jobs and workers being paid more, it backs the case for a rate hike from the Federal Reserve in December. However, it isn’t a done deal. Any market turmoil relating to next week’s Presidential election would quickly scupper thoughts of a policy change.
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