Dollar Finishes the Month On the Back Foot

The dollar finished the month well and truly on the back foot with the Dxy under 97.00 at the start of today’s trading. Most of the majors are still trading in within recent ranges but further uncertainty and political tension in Washington has put pressure on the dollar. The market is still looking for any sign that the Trump government will be able to push forward with it’s tax cuts and fiscal stimulus plan and not getting any hope at the moment and this is continuing to weigh on the dollar.

Across the other majors, Cable gained back some ground as the latest poll put the Conservatives back with a majority lead and Euro came back better bid and is once again looking at recent yearly highs.

The week’s set up changes dramatically today as we enter the new month and have a new set of data releases ahead of us culminating in the Non Farm Payrolls tomorrow night. Today in Asia we have the Australian Capex and Retail Sales data out at 11.30 am and this is followed by the UK Manufacturing PMI data (exp 56.5) at the start of the London session.

Into the New York session and we should get some further direction for the dollar with the ADP Non Farm data (exp 181k) out early in the session followed by the ISM Manufacturing PMI and Crude Oil inventories later on.

Traders will switch into a higher gear from today as the new month kicks off, there’s a lot of potential volatility ahead with the UK election and the expected Fed hike foremost in everyone’s minds, add to this a large amount of market uncertainty and we could see the recent quiet ranges in the currencies smashed apart.

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