FX Update- USD subject to JPY unwind
The USD continues to trade higher vs. all most major currencies, despite the rally in energies, after the better then expected July employment report with the USD Index up 0.15% to 73.319. Fed fund futures are slightly higher and now show a 28% chance of a September rate hike from 31% yesterday.
EUR/USD, currently down 0.3% to 1.5558, slipped below 1.56 overnight following worse than expected Retail Sales data in Germany.
Cable, down 0.45% to 1.9752, slipped below 1.98, its lowest level since July 10th, after the jobs report and worse than expected PMI data in the UK. Cable continues to trade in the lower portion of today’s range with the next significant level of support at 1.97.
USD/JPY, down 0.45% to 107.45, has been under selling pressure since the overnight session and is still trading in the lower portion of today’s range with EUR/JPY down nearly a full handle at 167.40ish and GBP/JPY down nearly 2 handles at 212.19.