Major US equities closed the month of August on a positive note yesterday. The mood in Asia remained mostly positive as well although gains at the time of writing were less decisive. The major drivers behind sentiment were; comments by US Treasury Secreatry Mnuchin re upcoming tax plan, a better than expected Manufacturing PMI for August from China.
The US Dollar index is seen recovering back some of yesterday’s losses this morning, the index measures the strength of the USD against a basket of currencies. Yesterday some unimpressive data out of the US dragged the USD lower but even comments from US Treasury Secretary , somewhat talked-down support for the buck, as he said that a softer USD was better for trade.
Today as we kick off the month of September, markets and also the USD will be looking on for directional clues as data on the health of the US labour market is due. Later today we are expecting the US Unemployment rate and the US Nonfarm Payrolls number.
EURUSD remains poised for the higher side although it has receded to 1.1897 from Tuesday’s highs of 1.2070. Realtimeforex TraderTip is expecting major support at 1.1802 before re-testing higher.
