The USD was close to 2-month highs as it (DXY) hit highs of 96.44 yesterday, this morning we saw a little bit of consolidation for the buck, the small pullback remained very much contained and the US Dollar index (DXY) is holding at 96.00 levels at the time of writing. Support for the USD has been fuelled by recent hawkish comments from the Fed’s Jeffrey Lacker and ahead of Friday’s Nonfarm payrolls.
The Pound continues to weaken agaisnt the euro as the EURGBP currency pair is making fresh highs of 0.8814 this morning. Against a weaker USD the pound looked in a position for consolidation, with the price in reality not too far off from session open at 1.2725 and after 2 sessions of losses for the pound. The pound is currently making 31-year lows.
USDJPY also stopped short of further highs after reaching session highs of 102.96 yesterday it has eased slightly lower to 102.80 at the time of writing, as the Yen took a breather after 6 consecutive daily losses against the USD.
We can expect a little bit of a breather as we move closer to Friday’s US Nonfarm payrolls and the event risk posed by it.
On today’s economic docket we have scheduled PMI Services from the EZ, UK and the US. IN addition we shall also get the EZ retail sales, US ADP, and Durable Goods order and Factory Orders.
