The dollar rallied in early European markets on Monday


The dollar rallied in early European markets on Monday, picking up losses after Friday’s nonfarm payrolls data, ahead of economic data from the world’s two largest economies this week.

At 03:05 ET (07:05 GMT), the US dollar index, which tracks cash return against a basket of six other currencies, was up 0.2% to 102.
082 rebounded from Friday’s low of 101.73.
$
fell to a one-week low against a basket of currencies on Friday after the US economy showed it added less jobs than expected in July.
However, the jobs report shows wages and unemployment rates are still low, indicating that the labor market is still tight and the crisis continues.

While the Fed clearly focused on future data ahead of its September policy meeting, attention is now turned to Thursday’s US economic data for guidance.

The low figure will increase the likelihood that Fed policymakers will not raise rates at the next September meeting after raising rates by 25 percent last month, but the main budget should increase by 4 percent.
July is 7% per annum.
USD/CNY
rose 0.7% to 7.1923, the weakening yuan ahead of the release of Chinese financial data on Tuesday, consumer prices expected to fall 0.5% a year in July and manufacturers will continue to contract.
After the administration failed to clarify spending measures, markets focused on more clues about Beijing’s plans to boost economic growth.

EUR/USD fell 0.3% to 1.0979, after German industrial production fell 1.5% month-on-month from a revised 0.0% drop in June.
Last month, the European Central Bank raised interest rates by 1%

earlier this month, but showing that Germany, the eurozone’s largest economy, still has problems, could lead ECB legislators to succeed in stopping the tightening cycle in September.

GBP/USD fell 0.2% to 1.2724 after Halifax mortgage data showed UK house prices dropped to zero for the fourth consecutive month in July.
It was down 3% from June and 2.4% year-over-year.

The UK is expected to release its second GDP data, which is expected to be higher, on Friday, suggesting that the economy as a whole is still close to the deficit.
Elsewhere, USD/JPY rose 0.4% to 142.34, despite some Bank of Japan members warning that inflation could exceed expectations this year.

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