The market continues to focus on the lack of yield in the euro-zone, keeping the euro on the defensive.
Charmaine Buskas
On balance, the steady increase in payrolls in conjunction with yesterday's comments by [Fed] Chairman Greenspan, who noted that the U.S. Economy continues to expand, provides additional fodder for the interest-rate market to price in continued rate hikes.
balance market economy price
It really reinforces the view that the Fed will continue to hike rates.
view
ISM was overall a good report, but (investors) are staying on the sidelines until the jobs reports comes out.
jobs good
Any upside in the greenback today may be mitigated by tomorrow's (Friday's) trade balance figures, which are the key release of the week. If they show a larger-than-expected deficit for June, dollar selling will dominate the theme in the currency markets.
key today balance june currency selling trade
focus market lack
On balance, the macro outlook continues to point to further rate hikes by the Fed.
balance outlook
The details of the report suggest many of these drags on growth were one-off factors and that the underlying trend in 2006 remains strong.
growth strong details
It looks increasingly like the Fed rate hike cycle is coming to an end, and that's been the focus... The market is just looking for an excuse to sell the dollar.
focus end market excuse
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