{"id":157049,"date":"2019-10-07T11:05:14","date_gmt":"2019-10-07T15:05:14","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=157049"},"modified":"2019-10-07T09:52:54","modified_gmt":"2019-10-07T13:52:54","slug":"usd-muted-following-nfp","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/usd-muted-following-nfp\/","title":{"rendered":"USD Muted Following NFP"},"content":{"rendered":"
October 7, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Soft Following NFP<\/strong><\/h2>\n

The US dollar has started the week on a soft note with the dollar index trading 98.58 last, reversing from earlier highs on the session.<\/p>\n

USD has been following a string of poor data sets recently. On Friday, the headline NFP figure came in at just 136k, narrowly beating the 130k forecasts.<\/p>\n

The results reflected a sluggish month for the US economy which also saw softer-than-expected manufacturing and non-manufacturing readings for September.<\/p>\n

Euro Lower<\/strong><\/h2>\n

EURUSD has been a little lower today, despite the weakness in USD as concerns for the state of the eurozone economy keep the outlook bearish.<\/p>\n

Data sets have continued to trend lower over the last month meaning that the ECB might not yet be done with easing.<\/p>

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EURUSD trades 1.0937 last. In the absence of any key domestic data this week, EUR flows likely to be tied to trade war and Brexit headlines.<\/p>\n

GBP Consolidates Further<\/strong><\/h2>\n

GBPUSD price action has become very congested over recent days as traders wait for news on the UK Brexit negotiations.<\/p>\n

The UK is expected to receive a decision from the EU this week regarding the new proposals submitted by the UK PM last week.<\/strong><\/p>\n

The UK currently has until October 19th<\/sup>\u00a0to reach a deal or the PM is required to request an extension to Article 50. GBPUSD trades 1.2306 last.<\/p>\n

Waiting on Trade War Updates<\/strong><\/h2>\n

Risk assets have had a soft start to the week as uncertainty ahead of the next round of US-China trade talks due this week is keeping traders sidelined for now.<\/p>\n

While Trump has sounded optimistic over the prospect of\u00a0a deal, the market remains hesitant. SPX500 trades 2940.18 last with price sitting back above the 2932 level.<\/p>\n

Slow Start for Safe Havens<\/strong><\/h2>\n

Safe havens have seen a subdued session so far with\u00a0gold a little weaker against USD while JPY has been a little firmer<\/strong>.<\/p>\n

The US-China trade talks present two-way risk for safe havens which will likely be lower on good news though could see strengthening if talks fail, driving safe-haven inflows.<\/p>\n

XAUUSD trades 1501.36 last with price in the middle of the 1481.93 \u2013 1522.75 levels. USDJPY trades 106.86 last, with price still sitting above the 106.75 level for now.<\/p>\n

Crude Recovers<\/strong><\/h2>\n

Oil prices have seen better buying over the European morning on Monday.<\/p>\n

Cautious optimism ahead of US-China trade talks is helping keep oil supported. However, the backdrop remains bearish for crude.\u00a0The EIA last week reported<\/a>\u00a0a further build in US crude stores, highlighting the ongoing demand issue facing oil.<\/p>\n

Crude trades 53.09 last with price having bounced off the 50.93 level support.<\/p>\n

CAD Higher on Oil<\/strong><\/h2>\n

USDCAD has been sold across the European session so far today.<\/p>\n

A weaker US dollar along with resurgent oil prices is helping lift CAD. Given how weighted the Canadian economy is to commodity prices, any positive developments with\u00a0US-China trade talks<\/a>\u00a0this week should provide a further lift<\/p>\n

Aussie Down<\/strong><\/h2>\n

AUDUSD has started the week on an offered tone as expectations of further RBA rate cuts keep the outlook bearish for the Aussie.<\/p>\n

If the US and China can agree on a short term deal this week, this could help buffer AUD. However, if talks fail, AUD is likely to take the brunt of the FX reaction. AUDUSD trades .6735 last.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Soft Following NFP The US dollar has started the week on a soft note with the dollar index trading 98.58 last, reversing from earlier highs on the session. USD has been following a string of poor data sets recently. On Friday, the headline NFP figure came in at just 136k, narrowly beating […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-157049","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=157049"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157049\/revisions"}],"predecessor-version":[{"id":157072,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/157049\/revisions\/157072"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=157049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=157049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=157049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}