Dollar Index Stuck Below 99.60 as FOMC and ECB Events Loom

The upcoming week in financial markets is expected to be influenced by several key events. The US dollar index, which measures the value of the US dollar against a basket of major currencies, has been unable to rise above its high point on Thursday at approximately 99.60. This is despite stronger-than-expected job growth.

The median forecast in Bloomberg's survey suggests that the dollar will finish the year with a value of CNH6.70. However, some analysts believe this prediction may be too conservative.

Another factor to consider is the relationship between sterling and US short-term interest rates. Sterling has been inversely correlated with changes in US two-year yields, meaning that when US yields rise, sterling tends to fall.

The Australian dollar also had a notable week, posting an outside up move and trading on both sides of its previous range before settling above it higher.