The Greenback has traded in a narrow band against its six rivals, the U.S dollar index which measures the greenbacks strength against a trade weighted basket of currencies moved between 94.98 and 95.37. Employment figures out of the states were mixed, Non-Farm payroll numbers came in below consensus estimates at 157,000 vs an expected 193,000. The unemployment rate move back down to 3.9% from 4% with the participation rate holding steady at 62.9%. Wage growth matched forecast with a 0.3%. Separately, the July ISM nonmanufacturing index also missed consensus forecasts, coming in at 55.7. A reading of at least 50 indicates expansion.
Meanwhile, the People’s Bank of China announced it will require a reserve ratio of 20% on currency forwards. The increased reserve requirement will make it more
expensive to bet against the currency.
Looking ahead, the economic calendar is light today, traders will be watching out for the Central bank’s meeting for further clues on interest rates.