FX.co ★ Fundamental analysis for September 2, 2011

This week the dollar has strengthened a little. This strengthening was related rather to adverse fundamental background this week in both the EU and Great Britain and Canada, not to stabilizing US situation.
The US news has been hardly optimistic this week. Consumer confidence declined, home sales shrank as well. Non-farm employment rate dropped to its critical value 91K. Analysts had predicted a fall in the employment rate to 100000. Such miserable data on employment will definitely has its impact on the unemployment rate data due for release today. The non-farm employment rate has been decreasing since the beginning of this year (see the chart below).

As to the preliminary assessments of price movements for the next week, the US dollar has been on a stable decline. From the technical point of view, the US dollar will drop for the euro will soon make another movement within its side band.
However, the attention is to be paid to a series of important news on unemployment slated for today. Theoretically, they can set the pace of the next week.