The US Dollar was relatively unchanged in London trading on Monday following last Friday’s profit-taking on a week now recorded as the Dollar’s best performance of 2017. Despite that, market players remain uncertain over the future of the US economy, as well as the ability for Donald Trump to push through his recently released plans for a reform of the US tax code. According to one FX strategist, the narrowing spread in the US bond market is a clear indication that Dollar traders should proceed cautiously. Last Friday’s NFP release was also not as upbeat as markets would have wanted with new private sector jobs missing estimates and an unexpectedly decline in average hourly wages and the participation rate.
As reported at 11:00 am (GMT) in London, the EUR/USD was trading at $1.16, down 0.01% and off the session low of $1.15876 while the peak stands at $1.16241. The GBP/USD was trading up 0.31% at $1.3117; the pair had earlier hit a peak of $1.3127 while the low is at $1.3057. The USD/JPY is trading lower at 113.972 Yen, a loss of 0.02% and off the session low of 113.930 Yen.
Also weighing on the greenback was last Friday’s NFP release which was also not as upbeat as markets would have wanted with new private sector jobs missing estimates and an unexpected decline in average hourly earnings, average hourly wages and the participation rate. Analysts, however, are optimistic that wages will recover, but say that October’s figures were relatively in sync with recent trends.