FX Brief: Dollar Extends Post-NFP Recovery

  • USD extended its gains as US investors come to the fray, while the pound and the Aussie were on among the weakest. The GBP/USD has been among the top fallers today, with the pound being on the brink as Brexit uncertainty takes its toll on UK economy, while improvement in jobs growth in the US has reduced the prospects of deeper rate cuts there.
  • European stocks and US index futures were coming off their worst levels after dropping at the European open. Equities have fallen a bit out of favour after the S&P broke to a new record last week but failed to push on as investors reversed their extremely dovish expectations over interest rates in the US following the publication of a solid jobs report. They are also keeping an eye on the upcoming earnings season.
  • Today is void of any major market-moving data, but there will be a few Federal Reserve speakers who could spark some volatility in the dollar later on.

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