Forex Today: All the attention goes to the US labour market
|The Greenback succumbed to expectations of a potential 50 bps rate cut by the Fed later this month after data signalled further cooling in the US labour market, all prior to crucial metrics later in the week.
Here is what you need to know on Thursday, September 5:
The US Dollar Index (DXY) receded to multi-day lows near 101.20 on the back of market chatter, suggesting a larger rate cut and shrinking US yields. The key ADP Employment Change takes centre stage on September 5, seconded by weekly Initial Jobless Claims, the final S&P Global Services PMI, and the ISM Services PMI.
EUR/USD regained composure and flirted with the 1.1100 barrier against the backdrop of renewed downward bias in the Greenback. Germany’s Factory Orders will be published on September 5, along with the HCOB Construction PMI in both Germany and the euro area, and Retail Sales in the euro bloc.
The broad-based upbeat mood in the risk complex lifted GBP/USD back above the 1.3100 hurdle, briefly clocking weekly tops. On September 5, New Car Sales are due, followed by the final S&P Global Construction PMI.
Extra appreciation of the Japanese Yen, lower yields, and the marked pullback in the US Dollar all helped USD/JPY retest the 144.00 region, adding to Tuesday’s decline. Average Cash Earnings, and weekly Foreign Bond Investment figures are expected on September 5.
In quite a volatile day, AUD/USD barely changed just above the 0.6700 yardstick amidst Chinese concerns, the weaker Dollar, and declining commodity prices. The Balance of Trade results and the speech by the RBA’s M. Bullock are due on September 5.
WTI prices dropped to new YTD lows near the $69.00 mark per barrel amidst the prevailing bearish sentiment among traders.
Gold prices alternated gains with losses just below the $2,500 mark per ounce troy despite the move lower in the Greenback and the negative performance of US yields. Silver saw a ray of hope following the Dollar’s bearish tone and advanced modestly past the $28.00 mark per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.