Last Friday's US employment report was positive for the dollar. Nonfarm payrolls increased by 211k in November, 11k more than forecast, and a further 35k jobs were added by upward revisions to previous months' data. The result was a jobs total 46k higher than investors had been expecting. There was no dramatic reaction, though the dollar did continue to drift higher over the next two days.

It altered direction in mid-week, possibly as a result of investors winding down speculative positions ahead of next Wednesday's long-awaited policy announcement by the Federal Reserve. Most now expect the bank to increase its benchmark interest rate for the first time in more than eight years. 

On the week the dollar is just about unchanged against the pound and the euro. Its fortunes in the week ahead will depend almost entirely on Wednesday's rate announcement and the reaction of investors to it.