Forex Today: Markets’ attention shifts to US NFP

The Greenback managed to shrug off part of the post-Fed retracement and advanced markedly in a context dominated by the risk-off sentiment. Around central banks, the BoE delivered a cautious 25 bps rate cut, although it warned against the view of successive reductions.

Here is what you need to know on Friday, August 2:

The USD Index (DXY) was the sole winner amidst the generalized risk aversion scenario, which saw yields head further south and a sharp sell-off in equities. On August 2, Nonfarm Payrolls take centre stage seconded by the Unemployment Rate and Factory Orders.

EUR/USD resumed its decline and returned to the sub-1.0800 region on the back of the generalized risk aversion sentiment. There are no data releases scheduled in the euro zone on August 2.

GBP/USD suffered the strong pick-up in the Greenback and retreated to four-week lows despite the cautious rate cut by the BoE. On August 2, the BoE’s Chief Economist H. Pill is due to speak.

A volatile session left USD/JPY lingering around the 150.00 neighbourhood amidst the risk-off trade and declining US and Japanese yields. The Japanese calendar is empty on August 2.

There seems to be no respite for the rout in AUD/USD, which sharply reversed Wednesday’s bullish attempt and refocused on the 0.6500 region once again. Home Loans and Investment Lending for Homes are expected in Oz on August 2 along with Producer Prices in Q2.

WTI prices partially faded Wednesday’s strong uptick on the back of US recession concerns and the stronger US Dollar. The commodity revisited the $77.00 mark per barrel following tops near the $79.00 region.

Gold prices could not sustain the initial bullish attempt to the $2,460 area per ounce troy and eventually printed modest losses near $2,440. Silver sold off to the $28.00 area per ounce after two daily advances in a row.