The USD is on a roll, still. US data, released yesterday, was much stronger than expected; ADP Non-Farm Employment printed at 230k vs. forecasts for 185k, whilst ISM Non-Manufacturing PMI came in at 61.6 vs. expectations for an index reading of 58.0. Later that evening, Fed Chair Jerome Powell gave a speech and said that the central bank had a “remarkably positive outlook” for the US economy. In reference to employment and inflation he said “while these two top-line statistics do not always present an accurate picture of overall economic conditions, a wide range of data on jobs and prices supports a positive view…….in addition, many forecasters are predicting that these favorable conditions are likely to continue.”
The dollar is stronger as a result, and without a lot of data due today from the US, we may see some profit taking ahead of the much anticipated US Non-Farm Payrolls data tomorrow.