Strong non-farm payrolls give USD strength
City Index July 4, 2014 2:46 PM
<p>With the explosive non-farm payrolls coming in at +288k yesterday, it’s no wonder that the USD was stronger overnight. Going into the US holiday, with […]</p>
With the explosive non-farm payrolls coming in at +288k yesterday, it’s no wonder that the USD was stronger overnight. Going into the US holiday, with such a strong number and fall in unemployment, the US is looking like it’s back on track.
Now speculation begins about a rate rise in the US.
The ECB also left the refi rate unchanged yesterday, as was expected, with not much coming out of the press conference except that QE is still on the table.
The main announcements were that the ECB will start a six-weekly cycle of rate announcements from January and start publishing minutes like the BoE currently do.
This is a way of guidance in the rate changes and gives time between decisions to see the results. The euro reacted to the strong non-farm payrolls from the US and continues on its way down.
Meanwhile the pound fell initially, reacting to the US data and weak services PMI, but gradually climbed back to being flat near the close and has continued to climb overnight.
Today being a US holiday, there’s no data out. It’s expected to be a very quiet day as traders take a break from yesterday’s excitement, leaving the FX markets in tight ranges until next week.
Supports 1.3575 1.3500 1.3480 | Resistance 1.3670 1.3700 1.3735
Supports 101.70 101.20 100.75 | Resistance 102.30 102.50 102.70
Supports 1.37135 1.7100 1.7060 | Resistance 1.7185 1.7200 1.7215
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