US data put USD on a roller-coaster ride

The USD was on a roller-coaster ride yesterday. The market's hypersensitive response to the US data was certainly caused by the statements of Atlanta Fed President Dennis Lockhart and Fed Governor Jerome Powell, who said that they thought the upcoming data, particularly for the US labour market, would be crucial for their decision about a rate hike in September. 

And indeed, the data sent mixed signals yesterday, at least at the first glance. Employment growth of 185k is certainly not a reason to be concerned about the US labour market, particularly since the figure has been vacillating between 175k and 230k since the beginning of the year. 

"And in the end, the official figures, which will be released tomorrow, will be key. In contrast, the ISM index for the services sector climbed to a ten-year high, at 60.3, and signalled clearly that the US economy is doing well. Overall, the data were therefore supportive for the USD", says Commerzbank.