US Dollar Forecast – Dollar firms after an upbeat US Jobs data

Dollar firms after an upbeat US Jobs data

The dollar stands tall on Monday after an unexpected increase in US employment data which created an expectation that US Fed reserve would continue with its tightening plans for the rest of the year 2017.

Fed Reserve is expected to stick to its plan for the third interest rate hike this year

In June, the US job growth was more than expected and the employers increased hours for work. This suggested that US Federal Reserve will have no plans for discontinuing its next planned interest rate hike this year. Despite the weaker wage gains unenthusiastic inflation, Fed is expected to begin reducing its balance sheet.

Dollar was 0.2 percent higher against Yen at 114.16 JPY and the dollar Index, a gauge for Dollar against at basket of currencies was steady at 96.012

Investors are tending more to do carry trades in the present situation. They borrow low yield currencies like Yen and buy high yield ones.

Euro was down against the dollar and reached $1.1404 EUR but was up against Japanese Yen.

Bank of Japan is not taking any steps to make Yen stronger, experts say!

On Monday, the data released showed orders from Japan’s core machinery tumbled unexpectedly in May. For the first time in 8 months, the Japanese government downgraded the outlook for orders raising doubts about the strength of the Japanese economy.

A majority of Forex strategist were less bullish on dollar than they were at the beginning of this year. They were more optimistic for the Euro. Still, higher US Treasury supported the dollar.

Yaron Mazor is a senior analyst at SuperTraderTV.

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