USD Index may come under pressure if the labour market data disappoint – Scotiabank

USD trades mixed versus majors. Economists at Scotiabank analyze how US data could impact the greenback.

Firm data may give the USD a lift

US data reports are dominated by employment figures – ADP data is expected to reflect a gain of 225K in private sector jobs in June (down from 278K in May) while weekly claims are forecast to rise modestly. We also get Trade numbers, final S&P PMI Services and Composite data and the June ISM Services Index. 

Firm data may give the USD a lift but short-term patterns in the DXY suggest gains are becoming a bit of a grind and the Dollar may find it hard to extend through the 103.50 area. 

Support for the index is 103.00/05 and may come under pressure if the labour market data disappoint.