FX commentary from Barclays:
"With only one more employment report to go, it seems plausible that the FOMC has already decided what to do in its next meeting.
Although wage pressures remain soft, the job market has probably improved enough to justify beginning the normalization cycle in September.
With rates market pricing a very timid normalization process, we see some scope for USD strength in the weeks ahead.
However we believe, in line with the FOMC's rhetoric, that the expected path of the fed funds rate for the next couple of years is probably more important than the actual date of the lift-off. In that regard, wage developments will continue to be monitored by markets to assess the speed of the normalization cycle.
We maintain high conviction in further EURUSD downside in the context of steadily improving US data and a likely September Fed rate hike that remains underpriced."
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