31 August 2017, 17:55  The US Dollar confirms near-term momentum

The US Dollar has confirmed some near-term momentum and continued to rally yesterday. If that is due to last for long, is still to be seen. NFP numbers tomorrow will likely play a huge part in the continuation of the most recent greenback strength. All US economic data this week has been strong so far with ADP NFP presenting a staggering 237k new jobs in the private sector against 185k expected by economists. We going through month end flow , so always avoid trading last day of the month. Month-end flows are a process that the FX markets go through every month. It causes an increase in FX volume on the last day of the month as funds from around the world need to balance their portfolios. “After June’s drop, the Eurozone unemployment rate stabilized at 9.1% in July. In the light of the current taper debate it is no surprise that markets rather focused on the preliminary inflation figures for August. Headline inflation actually rose to 1.5% in August, from 1.3% in July. This was slightly above the consensus estimate (1.4%), while core inflation remained stable at 1.3% (consensus at 1.2%).” Additional US data saw personal income expanding at a monthly 0.4% in July while personal spending rose 0.3% MoM, below consensus. Furthermore, initial claims rose by 236K WoW, taking the 4-week average to 236.75K from 238.00K.

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