This post was originally published on this site.There’s a light week ahead, as is usually the case after the NFP, starting with bank holidays in the U.S. and Canada. On Tuesday, Japan will release its GDP q/q, while Australia will publish the Westpac consumer sentiment data. On Wednesday, the U.S. will release the ADP weekly employment change, with two simultaneous releases as the source skipped last week’s data release. Thursday brings the ECB monetary policy announcement for the Eurozone, while the U.S. will release PPI m/m, unemployment claims and existing home sales. Finally, on Friday, the main focus will be...

This post was originally published on this site.FUNDAMENTAL OVERVIEW   USD: The US dollar spiked to the upside on Friday after the US NFP report showed job growth in August almost tripling the consensus estimate of 56K. The dollar gains didn’t last long, though, as most of the NFP-driven moves got faded thereafter. This happened because the market focus was not on the NFP report, but on the CPI. The market pays attention to the data that the central bank is focused on, and the Federal Reserve is currently focused on inflation. In fact, just a day before the NFP...