Last week has not been rich in significant events and related to it movements in the currency market. After the comments from the head of the Federal Reserve Janet Yellen and Vice Chairman Stanley Fischer, in which they pointed out the possibility of increasing of interest rate, the US dollar enjoyed moderate demand. On this background the euro/dollar has been under pressure, and the dollar/yen, gradually moving up, got to the area of the 104th figure, which can be referred to significant levels. But in anticipation of the publication of the US labor market data, of large-scale purchases of the dollar were not.
Published last week by US macroeconomic statistics in general was mixed. The consumer confidence index for August exceeded analysts' forecasts, which had a modest support to the dollar. Report on employment in the private sector by ADP came out within the forecast and the previous values, without putting thus almost no impact on the greenback. Disappointed on it the bulls the publication of the ISM index of business activity in the manufacturing sector of, which was below the level of 50.0, provoking a slight dollar sales.
The key event of the week was the publication on employment and unemployment in the US data that could strengthen expectations of increase by the FRS the interest rate at the nearest meeting and possibly on the next. However, published data showed that the economy was able to add 151 thousand of jobs, instead of the expected 185 thousand, and the unemployment was at 4.9% instead of the forecast 4.8%. The first reaction was a fall of the dollar, but soon he was bought out, which allowed him to finish the week near the current highs. However, after a relatively weak data to expect too much optimism on the dollar bulls are hardly will, at the same time they also can not be considered as a good reason for active selling of US currency. It is possible that this week's market activity will remain low, we recommend IAFT traders to patience. BlogLinks
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International Association of Forex Traders
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