U.S. dollar is finding support after two months of severe losses as traders are taking their profits from their short positions after the optimistic NFP report. New Zealand dollar is dropping versus the U.S. dollar as the RBNZ policy meeting is cementing and investors expect a less hawkish stance versus the previous policy meetings.
U.S. Dollar Find Support to Its Strong Sell-Off
The U.S. dollar is appreciating against its majors for the last two months. During the last days, the solid NFP report and few profit takers of their short positions supported slightly the greenback. Though the economic calendar is quiet, failing to influence the currency. NFIB Research Foundation showed yesterday that the small businesses were more optimistic than expected in July, with the business optimism index jumping to 105.2 against expectations to remain at 103.6 as the prior month. Moreover, IBD/TIPP economic optimism for August rose to 52.2 versus market consensus of 50.6 and 50.2 before.
Read the full financial markets daily report on JFD Research.