Markets on Monday: The USD Finally Rebounds
Rowan Crosby • 1 min read
The USD finally made a comeback on Friday after a week or so where it has been under all sorts of pressure.
The Greenback has been getting sold down, with the various trade deals and tariffs really being the major talking point. With a new deal between the US and Canada still looking some way off the mark. And Europe still being in the crosshairs of Donald Trump. However, this week we put our focus back onto the US economy as we build into another US employment report.
For the most part, the US economy is really looking strong. That was highlighted last week when we saw GDP of 4.2%. Which was above expectations.
This week we are looking at jobs on Friday and the headline number is expected to be 190K new jobs created last month. That’s up from 157K the prior month.
Elsewhere, we will also get ISM Non/Manufacturing PMI, as well as the unofficial ADP employment figures. They are really the major top-tier events.
Let’s not forget, Monday is a holiday in the states, so we will likely have muted action today.
The USD is Back
The support level at 95.00 is now looking to be an important level in the DXY. If we can hold onto that point, then we have a chance of getting above 95.50. That’s the major level for me at the moment.
That’s where we came from and if we can push back higher, I feel we can have another run at the highs.
Like I’ve been saying, I’m bullish on the USD and I think this was just a pullback. Especially as we are looking at another rate hike in September.