Dollar Up as Labor Improves
AUGUST 06, 2021
The U.S. Dollar has remained steady this week after some swings, according to the Bloomberg Dollar Spot Index.
Indeed, plenty of data and statements from central bank officials have forced investors and traders to assess the recovery process thus far and guide themselves. We received data this morning revealing that over 700K private jobs were added, while spending and wages also climbed as expected.
Nonfarm Payrolls added 943K in July, also June numbers were revised upward for June. Labor is the most important thing in the Fed’s mind right now and as long as there is progress the buck will be fine.
What to Watch Today…
- No major economic events are scheduled for today
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Euro value compromised as June’s industrial production from Germany printed at -1.3%, well below the expectations of 0.5%. We see Euro likely lower if indicators remain dwindling.
The Pound is erasing some of its gains. Bank of England held rates at 0.1% and voted to keep their current QE plan unchanged by 7 votes to 1 and suggested a tentative estimate for the new effective lower bound. We see the Pound giving up some of its value the rest of August.
Overall, seems like Bailey is keeping it very realistic, that he is afraid of unemployment increasing and that the variant does indeed cause concern about economic growth.