On the USD

Bit of a pre-Europe lull in markets isn't there..

Some strong USD thoughts:

  • The USD, shown by the the DXY, maintains gains.
  • Trade tensions a major bullish USD driver.
  • Ironic that Trump had been lamenting USD strength, but his trade threats meaning the USD rallies.
  • The USD is bid during times of trade uncertainty. Risk off.

NFP Thoughts:

  • NFP today predicted to show a healthy labour market.
  • Likely to rise by 190,000 jobs in July after increasing by 213,000 in June.
  • To simplify your positioning, anything near expectation should be a straight forward bullish USD signal. Just an 'as you were' signal within this strong USD environment.

Chart musings:

  • Ascending triangle.
  • Momentum looking to break out to the upside.