The US Dollar continued to have positive momentum after Friday’s labor data helped improve sentiment for the greenback. The news of 255K new jobs in July, far higher than analysts’ forecasts, is fueling the debate regarding the timing of the Fed’s next interest rate hike. The Federal Reserve Bank has a dual mandate of price stability and full employment, and this data, along with stable inflation could lend some credence to a hawkish argument.
As reported at 10:53 am (BST) in London, the EUR/USD was trading at $1.1089, just moving off the session low of $1.108. The GBP/USD was trading at $1.3043, down 0.24%; the pair has ranged from a session trough of $1.3030 to a peak of $1.3096. The USD/JPY was trading at 102.4110 Yen, up 0.585.
Safe Haven Yen Slumps
The US Labor Department report also weighed heavily on risk sentiment, putting a damper on the Japanese Yen. Coming alongside the Bank of Japan’s efforts the Yen is not finding any clear drivers at the moment, making Yen buyers relatively few and far between. Japan will have producer price inflation numbers coming out tomorrow and that could weigh on sentiment for the safe haven currency, as well. Key economic data for the week also include retail sales from the US, GDP growth for the UK and the Eurozone, and an interest rate decision from the Reserve Bank of New Zealand.