By Gina Lee
The US dollar give up early gains against the Japanese yen, but still remains stuck in a relatively tight range. That being said, it does look like we probably have more downside than up.
The British pound has initially tried to rally during the course of the session on Monday, only to give up early gains and break down again.
With Powell focusing mainly on the labor market, we feel that this week’s U.S. Non-Farm Payrolls report will carry a lot of weight over the near-term.
During July, Federal Reserve Chairman Jerome Powell mentioned his concerns about labor market growth twice in his public speeches.
The US dollar has fallen during the course of the week, but quite frankly we have not really changed much in the attitude of the markets as you can see.
The British pound has rallied a bit during the course of the trading week as we broke above the top of a massive hammer from the previous week.
The British pound has rallied a bit during the course of the trading session on Friday again, but as you can see, we are struggling to break above that shooting star from the previous session.
It’s a busy day ahead on the economic calendar. Economic data from the Eurozone, Canada, and the U.S will be in focus today.
The US dollar has been finding the ¥110 level as a bit of a magnet for price, as we also have the 50 day EMA sitting in the same general vicinity.
The British pound continues to rally significantly, as the Thursday session was bullish yet again for the Pound against the Japanese yen.
The upbeat tone of the Fed’s policy statement could mean the Fed will announce the start of tapering at its September 21-22 meeting.