USD Gains Steam & European Majors Drift Lower

With a stellar jobs data, the trade spat between the two biggest economies increases as China brings the issues to the WTO and European majors particularly the Sterling Pound have been quite supportive for the USD. The DXY is seen retracing back to its session high at 95.60 basis point as it is the strongest currency against its counterparts.

With the Sterling Pound (CABLE) drifting lower when it missed its retail sales report. GBPUSD is at 1.2984 heading well below the 1.2880 levels where it came from. While the EURUSD is keeping tis pace trading well below 1.1600 retesting it minor support levels, in which case both majors are in the defensive trying their respective best to hold these levels.

That includes the USDJPY corrective price action briefly dropping below the 113.00 handle due to risk aversion and from a light turnover from speculative liquidation as it draws closer to the US trading session. Meanwhile, with China soft data, commodity currency AUDUSD have likewise maintained a weaker stance as it falls to the 0.7343 where a revisit from where it came from at 0.7180 - 0.7280 range would not be discounted as long as the USD keeps its pace moving forward.
 
Although, the surrounding factors quite supportive of the USD strength came from the US  data, other equally important factors came from lower Gold at $1216.00 and Oil prices at $69.90 after marking a $67.80 low which have kept the USD index steady to higher price movements well in line with the FED's rate hike guidance from FED chair Jerome Powell's current testimony. While US equities are in a corrective mode from trade uncertainty will still be a concern for most investors relentlessly reacting to a volatile trade spat between China and the US including its allies.