Improved Non-Farm Payrolls Driving U.S. Dollar Higher
ECB Rate Hike Likely After Inflation Data Supports Monetary Tightening
The AUD USD rose sharply overnight, negating Monday’s closing price reversal top on prospects global growth will boost demand for commodities. Trader sentiment has rapidly shifted toward risk as the markets appear to have absorbed the potentially bearish situations in Japan and the Middle East.
The Euro is trading a little lower versus the U.S. Dollar this morning. Indecision seems to be the theme as traders mull over whether the European Central Bank has enough economic data to support an interest rate hike as early as next week. The lack of clarity and conviction from the ECB is helping to keep bullish traders on the sidelines at this time.
GBP USD under Pressure Following Weekly Reversal Top
The Euro is rebounding this morning after a sharp sell-off on Wednesday. Pressure was on the single currency yesterday following the confirmation of a technical closing price reversal top the day before. Fundamentally, traders turned bearish on the currency after Moody’s Investors Service downgraded 30 Spanish banks and following the resignation of Portugal’s prime minister.