After a slight decline since the opening of today's trading day, the US dollar has gone on the offensive on the foreign exchange market since the beginning of the European session.
Commodity currencies in particular received help from the positive economic data from China released during the Asian session,.
Manufacturing PMI in China in August rose to 22-month high of 50.4 (vs. 49.9 forecast). Readings above 50 indicate expanding activity.
However, market participants are waiting key data for this week - labor market data in the US in August, which will be published on Friday at 15:30 (GMT +3). The released data will largely influence the Fed's decision on raising the interest rate in the United States at the next Fed meeting on September 20-21.
The growth rate of Non-Farm PayRolls is expected at 180,000 new jobs. Strong data on the number of jobs will increase the likelihood of an early rate hike. In anticipation of this event, traders adjust their positions on the foreign exchange market.
Switzerland saw conflicting reports today. SVME PMI for August was better than expected (51 vs. 50.5 forecast and 50.1 in July), retail sales, estimating the total volume of retail sales, which is considered an indicator of consumer confidence in Switzerland increased in annual terms in August to the July value (-2.2% vs. -3.1% forecast and -3.9% in July), but still it remains in the negative territory.
In response to the publication the Swiss franc is weakening, and USD/CHF pair rose nearly 50 points. With respect to other currencies, the US dollar is also "going on the offensive."
"The case for raising key interest rates has increased in recent months," - said Fed Chairman Janet Yellen last week in Jackson Hole. Fed Vice Chair Stanley Fischer expressed himself more specifically, he believes that the US central bank may raise interest rates next month.
Investors are preparing for a large-scale strengthening of the US dollar. The trigger may be labor market data published on Friday.