Article by ForexTime

The dollar yielded some advantage against the Euro on Monday despite last week’s softer than expected employment cost index report which took some of the luster away from the greenback.  The focus this week will be on Manufacturing PMI data and the U.S. employment report which is scheduled to be released on Friday. The EUR/USD currency pair is creating an inside day following the whipsaw price action experienced on Friday.  Momentum is softer than last week which is reflected by a MACD that is printing near the zero index level and an RSI that is in the middle of the neutral range.

The EUR/USD is trading in the upper 1.09s in the wake of Friday’s short-lived surge to 1.1113 on the weak ECI out of the U.S. Markets will this week continue to assess the employment cost report, which threw Fed outlooks into disarray and resulted in a hefty dip U.S. Treasury yields. A September hike had been generally priced in after the FOMC meeting, but now there are doubts. Upcoming reports will be important. The July employment release will be the overall focal point.

The U.S. calendar will be focused on the July employment report Friday, which could start off the month of August with a bang if it diverges from forecast. That said, payrolls are expected to increase by 210k, compared to 223k in June. Depressed jobless claims readings should provide some tail wind, though any surprise substantial weakness could push lift-off further into 2016. The unemployment rate is expected to hold steady at 5.3%.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com