NFP has a positive impact on the US Dollar
Focus shifts to US CPI data
The ECB is expected to cut rates by 60 basis points
Vibrant at the close of last week's trading as the market's focus was entirely on the United States (US) NFP employment data report.
Looking at the report, the increase in US jobs in August of 142,000 was good compared to the previous month's revised downward figure, but the increase fell short of the forecast of 164,000.
The unemployment rate met forecasts to fall to 4.2% from 4.2% previously, and average hourly earnings in the US recorded a positive increase to 0.4% beating the forecast of 0.3%.
Overall, the report shows a relatively good reading and has a positive impact on the US dollar currency.
Reactions were mixed when the report was published with the US dollar first experiencing a decline before gradually strengthening after the market digested the numbers in the report.
Will the indications from this report prevent the Federal Reserve (Fed) from implementing their monetary policy easing measures?
The next indicator will be observed this week through the release of US consumer inflation data (CPI) as the main indicator.
Investors will expect the US dollar's strengthening momentum to continue early this week, but the situation could change when inflation data is published on Wednesday.
Also expected to steal the spotlight this week is the European central bank's policy meeting which is expected to implement aggressive policy easing.
The European Central Bank (ECB) is said to be lowering the interest rate by 60 basis points from the previous level of 4.25% to 3.65%.
The question will continue to hover in the market regarding the direction the Fed will choose is it similar to the ECB?
