Home Forex Market News Asian Session – Dollar enters crucial week on strong note

Asian Session – Dollar enters crucial week on strong note

The dollar again climbed to fresh 11-month highs against the euro, while it also managed to climb against the yen.  Positive US economic data as well as an escalation of the conflict in Ukraine helped the dollar to climb.  A key figure for the US dollar will be this Friday’s employment report for August, which is expected to show the labor market steadily continuing to recover.

Dollar / yen rose to 104.15, as data out of Chinese manufacturers pointed to a slowdown in the world’s second largest economy – which is also a very important trading partner for Japan.  The official National Bureau of Statistics PMI index slightly missed expectations by dropping to 51.1 from 51.7 previously, while analysts were expecting it to fall to 51.2.  The unofficial HSBC manufacturing gauge also dropped to 50.2 from 50.3 the previous month.  The Chinese data also had a negative effect on the Australian dollar.

The euro dropped before survey data that is expected to confirm that an index of business activity for manufacturers in the Eurozone fell to its lowest in more than a year.  The euro is under pressure ahead of Thursday’s ECB meeting, when Mario Draghi is expected to hint at the conditions when Quantitative Easing may start in the Eurozone.  The euro dropped to 1.3119 against the dollar, its lowest since September of 2013.

The manufacturing PMI out of the UK is also expected later during the day.  The United States is on Labor Day holiday today, which should lead to thin volumes and quiet trading during the US session.

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