At this stage, it is hard to get behind a weaker USD view when US economic growth indicators remain buoyant, and the Fed is set to continue on a steady rate tightening path, according to Greg Gibbs, Analyst at Amplifying Global FX Capital Pty Ltd.
Key Quotes
“Data this week includes a rise in consumer confidence to a new high. The survey showed further evidence of tightening in an already tight labor market with a fall to new lows in the balance between the jobs-hard-to-get index and jobs-plentiful index since 2001.”
“Manufacturing surveys have been mixed in August, but several showed further or ongoing strength, and there is little reason to expect much decline in the already elevated ISM or strong labor market reports next week. Durable goods for core capital goods rose more than expected on Friday last week.”
“The personal income and spending data are expected to show further solid gains for July, reported on Thursday. And the Fed’s most-watched inflation indicator, core PCE deflator, is expected to tick up to meet the Fed’s inflation target of 2.0%.”
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