Forex Signal Bullish

NFP Forex Signals Bullish

The US dollar recovered from Friday’s falls on Monday, but gains were limited as investors looked ahead to key US inflation data for July on Thursday.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.2% to 102.269, having fallen to a low of 101.7420 on Friday.

The recovery came after US non-farm payrolls data on Friday came in below expectations, raising concerns about the strength of the US economy. However, the data also showed that wages continued to rise, which could support inflation.

Investors will be closely watching the US CPI data on Thursday for further clues about the state of the US economy and the Federal Reserve’s monetary policy outlook. If the data shows that inflation is still rising at a rapid pace, it could prompt the Fed to raise interest rates more aggressively, which would likely support the dollar.

However, if the data shows that inflation is starting to slow, it could lead to expectations that the Fed could pause its rate hikes sooner than expected, which would weigh on the dollar.

Overall, the dollar is likely to remain volatile in the near term as investors continue to assess the outlook for the US economy and the Fed’s monetary policy.

Here are some additional factors that could affect the dollar in the coming days:

  • The release of other economic data from the US, such as retail sales and industrial production.
  • The outcome of the European Central Bank’s monetary policy meeting on Thursday.
  • The progress of the war in Ukraine.
  • The ongoing COVID-19 pandemic.

It is important to note that the forex market is highly volatile and unpredictable, so it is impossible to say with certainty how the dollar will move in the coming days. However, the factors mentioned above are likely to be some of the most important drivers of the dollar’s price action.