There was a lot of focus on last Friday’s US Nonfarm payrolls, as the Fed remains with either September or December if it wants to hike rates this year. A stronger NFP last Friday could have somewhat raised the probability of the September option but the figure came short of expectations with a 150k reading.
Consensus was pointing towards a 180k figure and a 180k to 200k-plus figure would have probably given the markets a good sign to buy the USD more agressively – but 150k fell short and the USD was unable to go past 01st September highs. US Dollar index is currently at 95.69 and heading south.
Sentiment was midly positive, at least on the major equity indices, with US stocks closing mostly higher last Friday. This morning Asia followed suit as markets traded in the green up to the time of writing. Despite the disappointing NFP figures, world equity inidices are manifesting a short term rally as they cheer an extension to easy money as the September option now becomes unlikely.
USDJPY is down to 103.55 at the time of writing after opening the session higher. The Yen gained favour after the BoJ governor failed to hint more clearely at an expected agressive easing solution.
Today’s economic schedule features EZ and UK Service PMIs for August, EX Sentix and July Retail Sales amongst others.
