USD Trading Outlook
U.S. Dollar Trading (USD) the positive risk appetite continued to grow overnight with the ECB not making any mistakes and helped stocks continue to rally. The FOMC minutes halted the rally with some members arguing for less specific dates for raising interest rates in the future. With the September NonFarm Payrolls looming we are expecting some consolidation ahead of the numbers with little movement till their release. Looking ahead, September NonFarm Payrolls forecast 113k vs. 96k previously. Also Unemployment Rate forecast at 8.2% vs. 8.1% previously.
U.S. Dollar Trading (USD) quiet trade overnight with the market cautious ahead of major risk events over the next 48 hours. The ECB and the BOE meet tonight and both could cause large movements with some speculation that the BOE will increase QE and that the ECB might announce new bond buying details. Economic data was good from the US overnight with Services PMI increasing to 55.1 vs. 53.7 previously. Looking ahead, FOMC Minutes released. August Factory Orders forecast at -5.8% vs. 2.8% previously.
U.S. Dollar Trading (USD) the market was upbeat overnight but we finished off highs with some disappointing comments from the head of Spain that a bailout was not imminent for his struggling country. The bulls are expecting Spain to formally request help and see this as an important step going forward to end the EU Debt Crisis. Looking ahead, ADP September Report forecast at 143k vs. 201k previously. Also ISM Services Forecast at 53.2 vs. 53.7 previously.
U.S. Dollar Trading (USD) the markets rebounded as the September Manufacturing ISM increased to 51.5 vs. 51.1 previously. The market was not keen to sell USD on the data and faded a snap move high from Gold to the Euro causing USD demand for the second half of the US session. The outlook is mixed with the critical US NonFarm Payrolls data on Friday playing even greater importance since the FED linked employment directly to monetary policy. Looking ahead, no economic data from the US tonight.
U.S. Dollar Trading (USD) the Dollar is on the front foot in Asia Monday as concerns about Spain’s hesitancy to formally ask for a bailout adds uncertainty to the future. The EUR/USD is testing fresh lows and stocks are on the back foot. China is away for the whole week on holiday’s and should limit some of the speculation on the Asian giant. Looking ahead, ISM Manufacturing forecast at 50 vs. 49.6. Also FED Chairman Bernanke Speaks.
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