Non- Farm Payroll Report on Friday

At the end of this week, the jobs report from the United States will be vital for the fate of the greenback in the near-term. US employers are expected to have added fewer jobs than the previous month in July, the change in non-farm payroll report will probably show on Friday, but the jobless rate is forecasted to have fallen to 7.5 percent from 7.6 percent. Given the Fed has tied any decisions on scaling back of its stimulus program to the improvement in underlying economic conditions, especially the labor market, any positive surprises may reignite dollar bulls and send the greenback surging.

Apart from the FOMC meeting and the labor market report from the US, the European Central Bank and Bank of England also hold policy meetings this week. Both the ECB and the BoE are expected to maintain their pledges to keep monetary policy loose but investors will be increasingly anxious over the outcome from Britain as Mark Carney completes his first full month as governor of the second oldest central bank in the world (oldest central bank is Sweden's Riksbank).

EUR/GBP surged on Tuesday to 0.8682 and approached its two-week high by 0.8711, ahead of the key central bank meetings.

IMOH, Clement I.
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