FX & CFD trading involves significant risk
The dollar traded near the strongest in eight months against the euro as investors raised bets it would climb versus the single currency to the most since November 2012.
The U.S. currency maintained its biggest weekly advance since March against major peers before reports forecast to show growth in services held near the fastest pace in at least three years, employers added more than 200,000 jobs for a sixth month, and economic growth rebounded last quarter. The preliminary reading of a Purchasing Managers' Index of U.S. services from Markit Economics was at 59.8 in July, according to the median estimate of economists in a Bloomberg survey. That would be the ninth-straight month above the 50 level that divides expansion from contraction.
Economists in a separate Bloomberg poll predict the U.S. Commerce Department will say on July 30 that gross domestic product rose at a 3 percent annualized rate in the second quarter. The 2.9 percent decline in the first quarter was the worst reading since the same three months in 2009. A Labor Department report on Aug. 1 will show nonfarm payrolls increased 231,000 in July, economists' forecasts show.
The Federal Reserve meets from tomorrow to debate the pace of interest-rate increases and whether to further reduce bond purchases.
The New Zealand dollar fell to a one-month low. Reserve Bank of New Zealand Governor Graeme Wheeler said on July 24 that the currency's level is "unjustified and unsustainable," after signaling a pause following four interest rate increases this year.
EUR / USD: during the Asian session, the pair traded in the range of $ 1.3425-35
GBP / USD: during the Asian session, the pair traded in the range of $ 1.6975-85
USD / JPY: on Asian session the pair traded in the range of Y101.75-85
A generally light data calendar for Monday (US Svcs PMI at 1345GMT then pending home sales at 1400GMT the stand out interest) with moves to come from end month flows and any geopolitical developments.
All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.