Dollar edges higher on dimming prospect of Fed's rate cuts after Friday's robust U.S. jobs data

Market Review - 08/07/2019 23:46GMT
Dollar edges higher on dimming prospect of Fed's rate cuts after Friday's robust U.S. jobs data
The greenback held on to its recent gains and ended the day higher against majority of its peers on Monday as last Friday's strong jobs data reduced market expectations of a rate cut from the Federal Reserve at its next July's meeting.
Versus the Japanese yen, although the greenback dropped from 108.58 in New Zealand to session lows at 108.29 ahead of European open, price erased its losses and rallied to 108.72 in New York morning on usd's strength together with broad-based selling in jpy, price later edged higher to session highs of 108.80 before easing.
Reuters reported earlier Bank of Japan Governor Haruhiko Kuroda said on Monday the country's economy was expected to expand moderately as a trend and gradually push inflation towards the central bank's 2% target.
"The BOJ will make necessary policy adjustments to sustain the economy's momentum towards achieving its inflation target," Kuroda said in a speech at a quarterly meeting of the central bank's regional branch managers.
The single currency was nursing losses in Asia following Friday's selloff to a 2-week low of 1.1208, price then briefly recovered to 1.1234 in European morning, however, renewed selling quickly emerged and knocked price to session lows of 1.1208 near New York midday due partly to usd's strength, failure to penetrate 1.1208 triggerd minor short covering and euro last traded at 1.1214 near the close.
On the data front, Reuters reported investor morale in the euro zone deteriorated yet further in July, confounding expectations for a rise, with positive signals from the equity markets failing to soothe investors who do expect an agreement in the trade conflict soon, a survey showed.
The Sentix research group said its investor sentiment index for the euro zone fell to -5.8 in July, down from -3.3 the month before, and well short of the 0.1 analysts had forecast. That was the lowest reading since November 2014.
A sub-index for Germany plunged to -4.8 from last month's -0.7, its lowest in almost a decade.
The British pound traded sideways in Asia before rebounding from 1.2512 to session highs at 1.2540 in European morning, however, the pair met renewed selling there and dropped to an intra-day low at 1.2500 in New York morning before swinging sideways in subdued New York afternoon.
Data to be released on Tuesday:
UK BRC retail sales, Australia NAB business conditions, business confidence, Swiss unemployment rate, Italy retail sales, Canada housing starts, building permits, U.S. business optimism, redbook retail sales and JOLTS job openings.
Author

AceTrader Team
AceTrader
Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

















