Payroll Data the Focus for the USD
Rowan Crosby • 1 min read
All the attention at the moment in the US is on the stock market. Despite the fact that we appear to be on a bit of knife’s edge, the USD remains strong.
To close out the week, we saw a strong GDP print, that came in at 3.5%, which was higher than the 3.2% expected. This comes on the back of a really strong Q2 and shows all the hallmarks of a strong US economy.
Some analysts are starting to question where exactly things are at and if this is as good as it gets. The pounding equity markets have taken in the last few days has been evidence enough for many of them.
However, we get the chance to have a good look at just how things are going once again, with US employment data due on Friday. The expectation is for 191K new jobs which is higher than the underwhelming number we got last month.
If things are still tracking along well in the US, we should expect a number above 200K and that might help lift markets off the canvas.
The USD Outlook
The [[DXY]] sold off a bit to close out the week and the resistance level turned support at 96.20 hasn’t been tested as of yet.
That will be the first major downside target on Monday trade. If price tests it and holds then we might well see some more upside towards the recent highs.
They are currently sitting slightly below my original upside target of 97.00. There were clearly enough sellers up there to trouble price and we weren’t quite ready for a run.