US Dollar ends higher boosted by NFP

The US dollar was among the best performers in the currency market during the week after a strong rally on Friday boosted by a better-than-expected US employment report. Greenback pulled back modestly during the last hours of trading amid risk appetite. The S&P index, that gains 0.78%, is about to post a record close.

The US Dollar index, which gauges the greenback against a basket of currencies moved toward 96.50 but failed to break higher and then pulled back but it was able to hold on top of 96.00. A week ago the DXY was at 95.50.

The data increased Federal Reserve rate hike expectations and the US dollar. The economic calendar shows few releases for next week. “In particular, we get some interesting releases on the consumer side of the economy, which will attract attention as private consumption continues to be the main growth engine in the US”, said analysts from Danske Bank.

Next Friday, retail sales number from July will be published. “We estimate the retail sales control group (the component that feeds into GDP) grew 0.3% m/m in July. If we are right, private consumption growth was off to a great start in Q3 after a very strong Q2” explained analysts from Danske.

Levels to watch

To the upside, resistance levels might lie at 96.50 (Aug 5 high), 96.75 (July 28 high) and 97.25/30  (July 20 & 21 high). On the opposite direction, support could be seen at 95.80 (Aug 1 high), 95.50 (daily low) and 95.30/35 (July 29 low).