Can we call it a disappointment if the FED doesn´t increase the interest rates in September? Well, if the US economic data keeps disappointing the forex market until the FOMC September meeting, then we can´t expect the FED ti hike the interest rates. After all, a prudential monetary policy must be based on the economic indicators and if these indicators keep missing the expectations then the FED bunch have their hands tight.
On the other hand, Yellen was as hawkish as she can be bout a week ago so that´s a strong signal. The unemployment rate remained unchanged against a 0.1% decline while the employment change was nearly 30k lower. That´s not really bad but as I said in the previous post, you must know which economic indicator is the most important at the moment and the wages take all the attention right now. They only grew by 0.1% in August versus 0.2% expected.
These are not good numbers but they´re not that bad either. After all, they still point to some economic growth, don´t they? The USD had a 50 pips wobble but has already recuperated the losses against the Euro and USD/JPY is already higher than where it was just before the release.
The market sentiment has totally shifted to the upside for USD/JPY
The market doesn´t know what to buy and you´ll have to buy another currency if you want to sell the USD. But, the ECB and the BOJ have offered the forex market a few hints for further monetary easing which make the EUR and the JPY more vulnerable than the USD, so the USD remains the good guy in a bad bunch. By the way, that spike in the Euro pairs was enough to push EUR/CHF higher and hit our take profit forex signal in this forex pair.