MIDDAY SNAPSHOT
As expected, the lack of data in the US session has resulted in a very quiet session of trade with the greenback continuing to benefit from Friday’s much better than expected NFP and unemployment release. The main takeaway has been that the USD has managed to rally in the face of positive data to suggest that the recovery on the home front may start to get the Fed thinking more seriously of potential rate hikes down the road. Sterling has been the laggard on the day with the single currency weighed down by some negative overnight developments including an article comparing the UK economy to the Japanese economy in the lost decade, and news that Llyods bank will need GBP15B in fundraising. However, the Sterling market could receive a boost later on today with the RICS set for release at 23:01GMT. The Conference Board has released it US employment trends index which shows a second consecutive month of an unchanged reading which points to some form of stabilization. US equities are mildly offered on the day, while commodities are mixed.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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