The Dollar strengthened sharply. Overview for 05.08.2016
05.08.2016
The main currency pair is falling on Friday; there are more affections for the Dollar after the USA published the report relating to the employment market in July.
The Eurodollar is moving to the downside on late Friday afternoon; the instrument is being sold for the third consecutive day. The pair is mostly trading around 1.1090.
So, it was the most important report of the week. The USA published the statistics on the employment market in July. According to the declared information, the unemployment rate in July remained the same, at 4.9% (the predicted number was 4.8%). On the other hand, the non-farm payrolls report was good as the number of jobs added 255 thousand although the market expected the increase by 180 thousand. The average workweek increased a little bit, now it’s 34.5 against the predictions of 34.4.
Such strong NFP report may allow the USA FOMC to rely on the employment market more than in the past and finally forget the May’s numbers, which were the lowest of the low.
Alignment of market forces in connection with interest rates is now as follows: financial markets barely think that the FOMC will increase the rate this year, although it’s still possible on paper.
The US Dollar is gathering strength again and the EUR/USD pair is likely to move towards 1.1050 if this wave of optimism continues.
RoboForex Analytical Department
The Eurodollar is moving to the downside on late Friday afternoon; the instrument is being sold for the third consecutive day. The pair is mostly trading around 1.1090.
So, it was the most important report of the week. The USA published the statistics on the employment market in July. According to the declared information, the unemployment rate in July remained the same, at 4.9% (the predicted number was 4.8%). On the other hand, the non-farm payrolls report was good as the number of jobs added 255 thousand although the market expected the increase by 180 thousand. The average workweek increased a little bit, now it’s 34.5 against the predictions of 34.4.
Such strong NFP report may allow the USA FOMC to rely on the employment market more than in the past and finally forget the May’s numbers, which were the lowest of the low.
Alignment of market forces in connection with interest rates is now as follows: financial markets barely think that the FOMC will increase the rate this year, although it’s still possible on paper.
The US Dollar is gathering strength again and the EUR/USD pair is likely to move towards 1.1050 if this wave of optimism continues.
RoboForex Analytical Department
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.