Trading news

USD: high NFP, high USD

During the past week US dollar strengthened versus its counterparts. We now see a picture we don’t see often: USD has weekly gains in all major pairs.

The greenback was helped by the growth worries in the euro zone and China, geo-political risks as well as concerns about the effects of the Federal Reserve normalizing monetary policy. USD is stronger versus both lower- and higher-yielding currencies. The Federal Reserve will hike interest rates well before the ECB and Bank of Japan – this is a certain thing. This pulls euro and yen down. And the commodity currencies are affected by risk aversion.

At first data from the US wasn’t very bright: ISM Manufacturing PMI declined, and so did factory orders and consumer confidence. However, American labor market has outshined everything: Non-Farm Payrolls rose by 248K versus 215K expected. Moreover, the unemployment rate fell from 6.1% to 5.9%.

In our view, this strong labor market will set the tone for the month ahead. US dollar is to continue gaining versus its competitors. Next week focus on the release of the FOMC September meeting minutes on Wednesday. At that meeting the Fed members gave higher forecasts for the main interest rate than in June.

Monday, 06 Oct, 2014 / 6:45

Source : http://fxbazooka.com/en/analitycs/show/2526

Trading news

 

Risk Appetite Remains High On Trade Deal & US Data

Equities continue to remain poised to the upside due to a number of factors. [...]

Posted on Friday, 17 Jan, 2020 / 2:46 under

US earnings and data, China GDP propel stocks to fresh highs; dollar nears 8-month high vs yen

  China reports slowest annual growth in 29 years but signs of [...]

Posted on Friday, 17 Jan, 2020 / 10:05 under

GBP, NZD and USD the Main G10 Gainers, Equities Sail North

The dollar traded higher against most of the other G10 currencies yesterday, [...]

Posted on Friday, 17 Jan, 2020 / 8:41 under