The US Dollar on the defensive, traded broadly lower against its major forex counterparts at the start of this forex trading week, with Asian markets seemingly playing catch-up following Friday’s US jobs report.
The data revealed that the economy added 151k jobs in August compared with 180k expected by economists.
The outcome initially sank US yields and the greenback as traders took the miss as a negative for Fed rate hike prospects. Benchmark borrowing costs and greenback would swiftly recover however, perhaps because the payrolls print nudged the three-month trend average above the 190k level cited by Fed Chair Yellen as supportive of tightening.
With that in mind, US Dollar on the defensive weakness may struggle to find lasting follow-through.
Augusts’ UK Services and Composite PMI readings headline the European data docket. Upside surprises on analogous manufacturing- and construction-sector readings proved supportive for the British Pound last week and more of the same could be on tap this time around.
Indeed, a Citi gauge measuring the behavior of UK economic news-flow relative to consensus forecasts is now pointing to the strongest outperformance in three years.
US Dollar on the Defensive US Dollar on the defencive traded broadly lower against its major forex counterparts at the start o…Sep 5 2016nigerianews.info