FX Update- USD
A slow afternoon in FX held the USD within narrow ranges vs. the major currencies with markets now focused on tomorrow’s July employment report which is expected to show a 75k drop in jobs. The USD Index is down 0.14% to 73.216, but is set to close in the upper portion of today’s range with support above the 9 and 21-Day moving averages. Fed fund futures surged following the unexpected jump in jobless claims and, despite a modest afternoon pullback, now show a 30% chance of a September rate hike from 36% yesterday.
EUR/USD touched 1.57 in the morning session, but was unable to break through resistance, and is currently testing support at 1.56. Cable was able to break through the 9 and 21-Day the moving averages (near convergence at 1.99) following this morning’s data, but has since returned to its opening level at 1.9817. USD/JPY, down 0.25% to 107.84, resisted slipping below the 9-Day moving average (107.60) in the morning session and is set to close in the mid to lower portion of today’s range.