The dollar remains steady in the first hours of the European trading

The dollar is the best-performing currency at the start of the day as it attempts to compensate for its losses after the worst job data since Friday. The results were weak, mainly because of the loss of labor growth in the manufacturing sector (due to the trade war?), But if we have to be honest, the other part of the report was not that bad.

Markets want to believe that this will raise the Fed's chances of lowering rates, but the 80% chance of this happening in July seems to me exaggerated.

By doing so, do not exclude the bear's dollar from the equation yet. Buyers of EUR / USD are still in short-term control, despite large outgoing FX options at levels around 1.1300.

At the same time, China's trade balance from earlier was mixed, but I remain pessimistic as imports (domestic demand) is not performing well, while exports were only boosted by pre-existing orders and this is not a good indication of a good perspective.

With part of the European markets closed today, we expect thin liquidity conditions, with the general thinking and feeling of strengthening the dollar and improving sentiment risk should continue until the opening of the US Trading Centers.

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