The dollar is still benefitting from a cautious market mood as well as comments from the US Federal Reserve Vice-chair Richard Clarida who gave a more hawkish tone than usual. Clarida suggested that tapering could be seen this year and interest rate hikes could start in 2023.
Initial jobless claims have now fallen for two consecutive weeks and the US trade deficit widened to a record $75.7billion in June, further indicating that the US economy is recovering.
Markets will now be looking to Non-farm Payrolls which are due to be released at lunchtime and are predicted to show a solid increase of 870,000 jobs in July.
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