The us dollar reverses higher. what is needed for it to continue used book stores sacramento


Sure, German consumer confidence beat estimates, but the rally looked very much like a capitulation by Euro shorts and US dollar longs market futures cnn. Have they finally thrown in the towel?

Judging by the reaction later in the session, it seems like this may have been a capitulation of some sorts. The dollar reversed from a low of 91.38 to close back above 92, and importantly the support at the 2016 low.

Reversal candles are present in both EUR/USD and the dollar, and so far in today’s session there is a small amount of follow through. EURUSD has fallen 130 pips from yesterday’s 1.207 high to today’s 1.194 low.

Is this the start of a significant reversal? Credit Agricole think probably not, and explain the reversal as simply month end rebalancing of flows what is futures and options in stock market with examples. ING are also skeptical,

‘The dollar has rebounded slightly from Tuesday’s sell-off, but there remains little to dissuade investors from positioning in stronger activity/yield stories elsewhere in the world… As long as the Fed is in no hurry to tighten – and we look for a subdued set of wage data in August’s NFP this Friday – then coming in at this pro-risk sentiment should continue.

For today, the US highlight will be the ADP release which, if in the 150-200k range, should support risk appetite euro chart. DXY could make a modest recovery to 93.00, largely led by a stronger $/JPY.’

Soaring US consumer confidence also helped the dollar bid, with yesterday’s print at 16 year highs. But clearly the dollar is unlikely to reverse significantly without some help from data – most notably inflation – and some help from restored confidence in the new administration.

Data will come in thick and fast for dollar traders over the next few days gbp stock price. ADP and 2Q GDP are reported later today, with any positive surprises in GDP likely to help the dollar’s recovery. ADP jobs data will set the stage for Friday’s main event, the Nonfarm jobs report.

The consensus view is for 180k jobs to have been added, but by now the market knows very well that the US labour market is strong; the focus is now on whether this strength will lead to any pick up in wage growth (and therefore lead to higher inflation).

‘Most labour market indicators suggest that the US jobs market remains healthy: ‘job openings’ are at a record high; ‘initial jobless claims’ continue to hover near four-decade lows; the NFIB small business survey suggests ‘jobs hard to fill’ is at a record high,’ summarized ANZ in a comprehensive report out today.

‘Notably, a practical limit to hiring strength is that the US labour market is getting close to full employment, which means there may not be sufficient supply to meet labour demand gold price today. Inadequate labour supply should, at some point, filter through to increased wages.’

Fed watchers will therefore be less concerned with the headline figure and more on some of the underlying data. Indeed, ANZ warns of the potential for a substantial miss.

‘There is a technical reason to be cautious about the August non-farm payroll release. Since the US job recovery began in earnest in 2011, the original estimate of August has undershot the final read by around 60k us canadian dollar exchange rate. This is almost three times the average monthly under shoot. Thus, a below-consensus number this week is a possibility’

Topics: Euro, US Dollar, Japanese Yen, Canadian Dollar, Germany, Euro Exchange Rate, EUR USD, EUR to USD, Federal Reserve, USD JPY, Euro to Dollar,

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