FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the firm tone from the USD.
"The US dollar continues to firm modestly in the near-term with the dollar index rising towards key resistance at around the 81.00-level which has held since last autumn. The US dollar is likely to derive further support in the week ahead from the release of the latest non-farm payrolls report for July and FOMC meeting."
"The payrolls report is expected to reveal that employment growth continues to remain robust building the case for the Fed to begin shifting away from its current exceptionally loose monetary policy stance".
"Non-farm employment growth has increased by an average of 231k/month in the first half of this year which compares to an average of 185k/month in the previous six months, and an average of 204k/month in the same period of last year. It is the fastest average rate of non-farm employment growth since April 2006 and clearly highlights that the labour market is strengthening."