Solid Jobs Report Supportive of U.S. Dollar and 75bps Rate Hike
Table of Contents
U.S. DOLLAR TALKING POINTS
- U.S. ISM non-manufacturing PMI in focus.
- Possible from loading from ECB could sap USD short-term.
- Bearish divergence apparent on daily DXY chart.
USD FUNDAMENTAL FORECAST : BULLISH
Last week saw the greenback start of on the back foot as the Dollar Index’s (DXY) main constituent (euro) found support on the back of an increasingly hawkish European Central Bank (ECB). U.S. data then came to the fore with ISM manufacturing PMI and Non-Farm Payroll (NFP) prints beating estimates ending the week marginally in the green.
Looking ahead, the economic calendar (see below) is comparatively light with ISM services data dominating headlines. The U.S. economy is after all a largely services driven economy and should bring with it some volatility pre and post-announcement. In addition, the economic release brings with it greater significance now that the Fed has placed more weight on data
ECONOMIC CALENDAR
Source: DailyFX…
