USD Strengthens | Market outlook
USD is supported by the release of positive data on the US labor market for July. The unemployment rate in the country fell from 5.9% to 5.4%, which is more than the market expected (5.7%). It is the minimum since March 2020. Employment, on the contrary, increased by 943K, which exceeded the revised figure for June (938K) and market expectations (870K). In general, the American labor market is recovering, although investors feared the negative impact of the new wave of the Delta strain, which is growing in the United States. The data also strengthens the market's confidence in the imminent start of monetary tightening. This week, US Federal Reserve Governor Christopher Waller said that if employment continued to grow close to 800K for several months, it would bring the economy closer to pre-crisis levels and allow the regulator to start reducing the volume of purchases of securities in October.
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Where do you think DXY is heading? Comment your thoughts in the comment section below.
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